Forget The Pullback, A Legend Connected In China At The Highest Levels Just Predicted Price Of Gold Will Surge More Than A $1,000 From Current Levels
As we approach the end of November, in what has been an extremely tough environment in the gold and silver markets, a legend in the business that is connected in China at the highest levels says forget the pullback and predicted that the price of gold will see a staggering 86 percent spike or more than a $1,000 upside surge.
Price Of Gold To Surge More Than $1,000
By John Ing, Maison Placements
November 25 (King World News) – After the Trump tsunami, predictions including our own were fortunately relegated to the dustbin of history. While visiting Hong Kong, we watched Trump’s victory with gold skyrocketing over $30 and the market meltdown was some 800 points. However, the next morning, gold was off $30 and not the $100 an ounce spike we expected, with the market closing up 300 points.
Everyone hates uncertainty and the Donald’s success as President raised fears of a black hole as the glass that was half full, is now half empty. Rather like his victory, investors saw what they wanted…
His presidential demeanor made the President-elect look, more presidential – he must be president then. Near term, the outcome outweighed the uncertainties. However, the realities of political deal-making and his inevitable fence mending will likely leave investors in the dark for some time.
The Republicans will control the White House and both chambers of Congress. Of course, there is no certainty that the Republicans will support their leader. After all, they did not support him during the election. Bad blood between the two parties is only surmounted by bad blood within their parties. America is divided. To be sure important problems such as the tax code, America’s record debt, infrastructure requirements or even immigration needs fixing. But Mr. Trump is caught in a vicious circle where he will cut taxes and red tape with a focus on domestic issues which will result in higher interest rates, trade tariffs and higher inflation.
The President-elect’s victory was one of the biggest upsets in modern US history, shocking America’s power structure, popular media, Wall Street and just about everybody else, but Main Street. Who knew those so called deplorables would number more than 60 million of Americans? Trump did. Britain’s vote to leave the European Union and Trump’s victory has fueled concerns that populism is gaining, at the expense of the status quo. The upcoming December 4th Italian constitutional referendum and elections in France and Germany next year are yet another test that could pave the path for another euro exit. In the wake of Trump’s victory, the shifting geopolitical balance will impact globalization, immigration and the establishment, all targets of Mr. Trump.
So many words are wasted on what Trump will or won’t do. The media, Democrats, world leaders and even his own party who were against his election are now giving unsolicited advice on what he should or not do and some even suggest he abandon his freestyling ways that upset the well entrenched and financed political elite. To be sure, Mr. Trump’s every move and tweet will be magnified. The media narrative, as usual has taken a literal view of his previous pronouncements comparing them against recent announcements in a “gotchya” attempt. In essence there are two Trumps, the candidate versus the president. Campaign rhetoric is one thing, the president is another. Which one will surface?
The Apprentice In Waiting
A perfect example is the fear or hype of a full-blown trade war with America’s biggest creditor China, on concerns of a new era of US protectionism. We believe a more practical approach is likely because China is the largest trading partner of the United States. While Mr. Trump threatened to slap a whopping 45 percent tariff on Chinese imports and name the country as a currency manipulator, a fight would boost consumer prices hurting his mainstream constituency in the pocketbook. More relevant is that China’s $1.3 trillion of US Treasuries could be unloaded pretty quickly, sending interest rates higher which would have a much more negative consequence on the domestic economy. Besides, it seems that every president before him has threatened to impose trade barriers and the most recent, Mr. Obama actually imposed a tariff on Chinese tires which was quickly dismantled when China, in a tit-for-tat move, put its own tariff on US car parts and chicken. This time Apple phones, Boeing airliners and Hollywood movies are in China’s arsenal.
Trump’s tearing up of the TPP, Brexit and the Belgium hold up of the Canada-EU Pact are part of the slippery slope of protectionism, reminiscent of the Dirty Thirties and the Smoot-Hawley Tariff Act which seized up trade in the Thirties and of course contributed to the Great Depression. Competitive devaluation is one barrier to trade. Tariffs, of course are another. Tariffs still protect Canada’s milk producers for example. The essence of the trade deals is not the loss of jobs but the free flow of goods and services at much lower prices. Tariffs simply subsidize jobs. Today, Canada, Europe, China and the US are reliant on trade. China remains the American’s major trading partner but 80 percent of Canadian exports go to the United States. What our populist leaders will soon discover that by erecting trade barriers, as in the Thirties, they might protect some jobs but those US working class families won’t be able to afford their cars, vacuum cleaners, Walmart or Apple products. And that is something even Trump can understand.