Trump loves gold, and it may love him back too

Ever heard the name “Donald Trump”? The Republican candidate for the upcoming Presidential election is a main fixture on the majority of media outlets—both on a national and global scale. Oh and guess what? He really likes gold.

Trump and gold

The 2016 Republican National Convention was a display of many things. One of them was the love affair of Trump and gold. The jumbotron was flanked on both side with gold pillars. The stairs leading to the stage were lit with a golden light. His massive name with backlit with none other than… you guessed it… a warm golden hue.

Trump RNC

Republican National Convention. Source.

In his personal and business endeavors gold has played a central role as well. Visitors to the famous and luxurious Trump Towers are welcomed with huge gold letters. The Trump International Tower in Las Vegas is one big stack of golden blocks. And even his home—including the bathroom—is full of gold!

Trump Tower

Trump has also shared his views of gold as a strong financial instrument. He told WMUR television New Hampshire in March of last year “We used to have a very, very solid country because it was based on a gold standard,” But he said it would be tough to bring it back because “we don’t have the gold. Other places have the gold.”

And, a disclosure of Trump’s financial holdings released last year revealed that he owned physical gold worth $100,000 to $250,000.

The effect of a Trump presidency on the price of gold

Experts and analysts have also come out to say that a Trump presidency would actually be great for gold. Or, at least, the possibility of him winning the presidential election, says Greg Collet, the World Gold Council’s director of investment products via Business Insider.

There is a certain unease that comes with the idea of Mr. Trump being elected.

“He’s very unclear in his policies, and uncertainty tends to make people say, ‘Maybe I should have something a little bit in gold,'” says Collet. “If he’s elected, this time next year, what does the country look like? Who knows? Who knows if companies can do business with China or Mexico, [or] if we’re like rounding up people and deporting them, who knows?”

He continues:

“That sort of weighs on people’s investments, except for gold. It helps gold.”

In addition to rising uncertainty regarding a Trump presidency policy outlook, his promise to tear up trade agreements would likely put a dent in the U.S. economy, according to Georgette Boele, a currency and precious metals analyst at ABN Amro.

“If Trump were to become president, gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the U.S. economy,” Boele said. “In addition, his rhetoric and possibly policy actions could create domestic and international uncertainty at best, and upheaval at worst.”

In addition, Boele said that the weaker U.S. growth could help spur gold towards $1,850 an ounce over the coming years—a 40% rise from gold current level.