Gold & Silver SUPER BULLISH: Trump Doubles Down On The Dollar & The Fed Rate Hikes

President Trump is again saying things that are very, very bullish for gold & silver. Here’s the details…

 Here’s what the President said yesterday:

I speculated that he could either walk back those comments or clarify them at his 3:00 p.m. EST meeting at the White House about jobs.
It appears now, however, that not only is the President not walking back those comments, he’s doubling down.
Here’s the President this morning:

This is HUGE.

Basically President Trump is reigning in the rise of the dollar.

He is also calling on the Fed to hold off on rate hikes.

Now I get it, there is minimal movement now:

But it is the implications of what he is saying that are huge.

It’s basically a fundamental shift from the norm – It’s a change in market direction that will play out.

Both of the President’s comments are bullish for gold and silver. Here’s why –

Gold and silver are the only true competitors to the US dollar (nations devalue against the dollar, but the dollar can only devalue against gold in the most pure of devaluations).

Therefore, the dollar and gold & silver move in the inverse of each other, meaning that as the dollar rises, pressure comes on gold & silver, which we have seen lately.

When the dollar falls, this puts a bid in gold & silver.

As far as the rate hikes, well, the MSM propaganda machine wants everybody to think that rate hikes are “bad for gold”.

They’re not, but that’s not the point here.

The point here is that if the rate hikes are now on hold, the MSM would have to bring out their gold bashing in a different way because everybody understands not hiking is bullish for gold & silver.

It’s really more than just the rate hikes, however.

What really matters are real interest rates – that is, the rate of interest minus the rate of inflation.

You see, while the Fed Funds Rate is essentially a float between 1.75% and 2.0%, net of inflation, the real rate is negative.

For example, in June, headline CPI inflation rate was 2.9% year over year.

The argument often goes like this: Gold doesn’t pay any interest.

Yeah, well, keeping up with inflation and maintaining purchasing power beats negative interest rates every time.

You see, when real interest rates are negative, that means those dollars in a savings account are losing purchasing power.

They would be better converted into something that keeps pace with inflation, such as gold & silver.

And with the very heavy hand of price suppression lately, there is so much more upside potential in gold and silver than there is downside potential, and as President Trump is reigning in the dollar and essentially killing the dollar rally, he is essentially putting in a bottom in gold and silver.

Bottom line: President Trump’s interview yesterday is bullish for gold & silver and negative on the dollar.

Today, the President doubled down.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

***