In the past, traditional thinking would point to precious metals prices taking a hit with a new Republican president. But these are very different times and President Donald Trump is a very different kind of Republican.
Since gold prices hit a recent low a week before Christmas, they have risen dramatically. And once President Trump was inaugurated, prices rose sharply again. Some of this can be attributed to the changing financial landscape across the globe but economist Eric Strand believes the biggest reason is how President Trump and trusted advisor Elon Musk view the creation of fiscal prosperity.
“Both Donald Trump and Elon Musk have built their empires on loans, lots of loans, while driving full steam ahead,” Strand said in his report. “This will likely be the scenario for the coming four years. Avoiding a ‘bust’ at all costs to create a positive ‘boom.’ The price for this will be monetary inflation. An inflation boom creates a financial environment where commodity prices, including gold, rise significantly.”
While U.S. government debt has risen to historic levels, currently above $36 trillion, Strand noted that the U.S. is not alone. He highlighted that governments worldwide continue to engage in deficit spending.
“The amount of money in the system is increasing without much real growth being created, which naturally means that each monetary unit becomes less valuable,” he said.
These comments come as gold prices continue to trade near record highs against major currencies including the euro, British pound, yuan, Canadian dollar, and Australian dollar.
But there’s another policy that keeps investors focused on precious metals: Central Bank buying. Most of the world’s Central Banks continue record purchases of gold and some have branched into silver for its utility.
“We’re bullish for our clients on both gold and silver,” said Jonathan Rose, CEO of Genesis Gold Group. “Economists like Eric Strand who think gold can end 2025 over $3,300 may be underestimating.”
Genesis Gold Group is a faith-driven precious metals company that specializes in tax-free rollovers and transfers of retirement accounts into gold- and silver-backed IRAs.
Despite the bullish outlook in his 2025 forecast, Ole Hansen, Head of Commodity Strategy at Saxo Bank, recommended that investors be discerning as they build a commodity basket within their portfolios. Gold and silver remain two of his top picks after their historic runs in 2024.
Americans can take advantage of the “safe haven” properties of physical precious metals through the IRAs and 401(K)s. Learn more by requesting a free, definitive Wealth Protection Kit from Genesis Gold Group.
