If you were waiting for the sky to fall after President Trump took office, you might want to exhale that breath and check out today’s markets. For the first time in its history, the Dow Jones industrial average reached 20,000- a marker many thought was the stuff of fiction.
Just minutes after the opening bell, elation and celebratory high fives were seen throughout the trading floor of the New York Stock Exchange.
Investor confidence in the newly elected president is clearly evident; buyers believe Trump’s campaign promises to stimulate the economy with “growth friendly policies” will come to fruition. At his inauguration, President Trump reinforced the need for a radical overhaul of previous legislation. His presidency, won in large part because of his guarantee to cut taxes and bring jobs back to America, has quite obviously created optimism in the market.
In 2009, when the Dow was 6,547, many thought we would see 5,000 before we saw 20,000. The market has accomplish a massive feat, and, while a slight correction is likely, things are looking mighty fine.
What does this mean for precious metals?
Well, as an astute Elemetal trader noted, “you buy gold or you buy equities; you don’t buy both.” When investors aren’t worried about an economic collapse, you see a decrease in the rush to safe haven commodities, like precious metals. As a result, spot price is down across the board.
If you’re a stacker, this is a great time to add gold and silver, (and platinum and palladium) to your portfolio. Industrial demand for precious metals is expected to rise in the second quarter, which could result in a bull market in the days to come.
Today is a good day for America. Celebrate with the newly released 2017 1 oz American Silver Eagle.
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