On the Road

by JDH on August 24, 2019

I am on the road this weekend, so I will simply say this: read what I said last week about gold.  Gold had a great Friday.  NUGT was up 12%, proving my point about volatility.

The talking heads on TV will tell you it’s because of trade tensions with China, and that may be true.

I am not a political expert, and I’m not an American, so I can offer no intelligent opinion on the subject, but of course that won’t stop me: Trump got elected on a “bringing jobs back to America” platform, and since a lot of American products are made in China, a trade war with China is good politics.  (Whether it’s good economically is another story).

So Trump starts a trade war, some companies will bring production back to the USA, and Trump can run on that in 2020.

Trump also wants lower interest rates, which hurts the dollar, which helps gold, and that is the most plausible reason for gold’s rise.

Either way, it is playing out as expected, so enjoy the ride.

More next week.