Gold Rises In All Currencies In 2016 – 9% In USD, 13% In EUR and 31.5% In GBP

However, this asset may become a liability for him and for markets when he becomes President. The art of diplomacy will become more important and 140 characters of unfiltered Trump is likely to create tensions with America's largest trading partners such as China. This has been seen with China recently and his accusation that China "stole" the U.S. drone on Twitter.


It has already impacted markets as seen when he tweeted about Boeing and Boeing shares fell sharply.


Should he continue in this vein, it could lead to jitters in markets and a safe haven bid for gold in the event of 'inflammatory', tension creating and damaging tweets. His capacity to comment without fully understanding all the facts may be his 'Achilles heal' in this regard.


Overnight Trump's tweet regarding Toyota saw the Japanese car maker lose $1.2 billion in value in five minutes.  Shares plummeted after the president-elect vowed in a tweet to stop the car manufacturer from moving abroad.



Stocks, bonds and property markets have performed very well in recent years. However, there gains are artificial and are based on near zero percent interest rate policies and from being bloated by monetary stimulus on a scale that the world has never seen before.


These bubble like conditions look increasingly vulnerable and will likely burst – the question is when rather than if.


Indeed, the turmoil that we have seen on international markets in 2016 appears a foretaste of a very volatile 2017. We continue to see conditions akin to those seen in 2007 and 2008. Many leading experts have echoed these concerns.


Geopolitical risk intensified in 2016 with Brexit, the Italian referendum and of course the election of Trump. The risk of terrorism and war remain ever present and gold will continue to act as an important hedge against geopolitical risk.


The risk of contagion in the EU - both political and financial and monetary now looms large. Today there is the added risk of bail-ins and deposit confiscation which will be see savings and capital confiscated from savers and companies in the next financial crisis.


Conclusion


It is worth remembering – as many seem to have forgotten – that gold was one of the few assets to rise in the financial crash of 2008 and in the debt crisis in the 2007 to 2012 period. It has under performed since as stocks and bonds roared to artificially induced record highs.


< Prev 1 2 3 Next >

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks