Monday, May 9, 2016
US Presidential hopeful Donald Trump has been revealed as a major gold investor.
The presumptive nominee for the Republican party’s battle for the White House owns between $100,000 and $200,000 (£69,000 and £138,600) in bullion in the form of coins and bars, according to his declaration to the Federal Election Committee.
Back in 2011, Trump received payment for a lease in Wall Street from a precious metal dealer in gold rather than cash. In a televised stunt, Michael Haynes paid over the rent to the businessman turned politician in the form of bullion, The Guardian reported.
At the time, Trump’s people said he had accepted the payment in gold because he was expecting the US dollar to fall in value, which would increase the value of gold. This didn’t happen: the gold value dipped for four years but the fortunes of the precious metal – just like Trump himself – are now on the rise.
Trump isn’t the only famous investor who is backing gold. Stanley Druckenmiller, a well-known name in the hedge fund world, recently told investors about his support for the precious metal.
Market watchers also expect the Trump effect to lead to a further increase in the value of gold during the race for the White House. They forecast greater geopolitical tensions to arise as the Presidential candidates continue to argue their respective corners, which will give a boost to gold because of its traditional position as a safe haven for cash in stormy waters.
The gold price has jumped strongly this year amid fears about both the global economy and political concerns. It has also been supported by the US Federal Reserve’s decision as yet to not raise interest rates again, despite expectations at the start of the year there could well be a number of increases in the cost of borrowing to come in 2016.