Politicians can keep arguing whether President Donald Trump’s tax plan will benefit the middle-income families and U.S. businesses, but there’s one sector that could be a clear winner: precious metals.
The tax plan being considered in Congress would inflate the nation’s budget deficit and expand the debt, Bart Melek, head of global commodity strategy at TD Securities in Toronto, said at the Silver Industrial Conference in Washington. That deterioration in the nation’s fiscal standing is a recipe for higher silver and gold prices, he said. From 1984 through 2012, gold rose as the federal debt climbed relative to gross domestic product, Melek said.
Silver will outperform gold, surging as much as 19 percent to $20 an ounce by the end of next year, as global growth boosts industrial demand for the white metal just as mine supply slows, he said.
PG View: The House is expected to reveal their tax plan tomorrow and the calculations to determine the implications for the national debt will follow quickly…