Trump Won Yet Gold is Falling… Why?

by Hebba Investments

“It all comes down to an investors’ view on whether or not increasing US budgets will be feasible in the currently over-leveraged and overly indebted that we live in today. If you believe that bond markets will accept trillions of dollars of additional debt and higher inflation without spiking, then you want to be a buyer of stocks and commodities.”

Trump Won Yet Gold is Falling… Why?“But if you are of the view that the next crisis in going to be in the bond markets, then there will be probably be significant road-blocks to any major government spending program and that will provide headwinds for US stocks and the US Dollar. As an alternative reserve currency without the ability of governments to dilute it via massive spending, gold provides investors with an excellent hedge in this environment – and that is the environment we believe we are heading for.”

“Thus, we think this is an excellent opportunity for investors that heeded our advice and lightened up positions prior to the elections to beat the mainstream investment herd by accumulating physical gold … In fact, we have begun accumulating precious metals miners again after being uninterested for many months, as the valuations have come down significantly from a few months ago and there is now value in owning them again.”

“It is time for investors to a step ahead of the crowd and understand that if massive government spending is undertaken we will see even more chaos in bond markets – and that is very gold positive.”

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