Trump Launches Currency War

Geopolitical instability is just one of the catalysts preparing the launch gold prices into the stratosphere. In an interview on Wednesday, President Trump seemingly signaled he was also prepared to wage a currency war. Trump Launches Currency War By Luke Burgess Written Friday, April 14, 2017 Donald Trump's presidency is the best thing to happen for the gold market in years. Everything Trump has done over the past week has been positive for gold. The Syrian airbase strike, increasing tensions with North Korea, and his comments on the U.S. dollar have all caused gold prices to swell nearly 3% in the past five days alone. [gold apr 13 20171] This is a trend we can expect to continue. Increasing geopolitical tensions between the U.S. and... well, the entire world... will no doubt boil into military conflict somewhere. America's involvement in Syria is not over by far, and North Korea is a willing foe. And if it's not war with Syria or North Korea, be sure that someone will continue to challenge the Trump administration. And remember, Trump is only 84 days into his presidency! So far Trump has only served 6% of his four-year term. He has plenty of time to make more political enemies through Twitter. But geopolitical instability is just one of the catalysts preparing to launch gold prices into the stratosphere. In a Wall Street Journal interview on Wednesday, President Trump seemingly signaled he was also prepared to wage a currency war. How to Leverage Trump’s Trade War to a Legacy of Wealth It’s only a matter of time before President Trump slaps hefty duties on China and Mexico. And you can bet they’ll retaliate with tariffs of their own. The result: a global trade war, the likes of which we haven’t seen since the Great Depression. Will you be prepared? You’ll not only be prepared, you’ll be in position to reap windfall profits from it all if you make a few simple adjustments to your portfolio. [Click here to learn more now]( (while there’s still time). The U.S. dollar is already in troubled waters amid increasing distrust in the government and the Fed's monetary policies. But add to this increasing trade disputes with foreign nations, and the result is toxic for the greenback. In the WSJ interview on Wednesday, President Trump said the U.S. dollar was overvalued. He said, “I think our dollar is getting too strong, and partially that's my fault because people have confidence in me. But that's hurting — that will hurt ultimately.” With this comment, President Trump has seemingly launched into a campaign to do exactly what he condemned China for doing: competitively devaluing their currency, a.k.a. participating in currency war. Many might wonder why a central bank would purposely devalue its own currency. But central banks like the Federal Reserve and PBOC need to control the value of their currency in both directions (devaluing and revaluing) to meet market conditions. Sometimes they want to increase the value of their currencies; sometimes they want to decrease them. For a country, devaluing its currency increases the purchasing power of foreign buyers, meaning increased exports. The catch is devaluation also increases the cost of imports. And it's vice-versa for revaluing a currency. Increasing the value of a currency will decrease the purchasing power of foreign buyers, meaning lower exports. But it will also decrease the cost of imports. [trade apr 13 2017] All this works well and good, with a balance. But when one or more countries find themselves in desperate need of fixing their trade deficit (like today), this tinkering can lead to an all-out currency war. [The Next Gold Buyout Targets]( In the next gold upcycle, which is beginning now, small precious metal stocks will be bought out for giant premiums. If they're not taken out at a premium by larger companies... their value will rise by many multiples as gold and silver price take off. We think we know which companies those will be. The key to those gains, and the shopping list of gold and silver stocks to buy now, is spelled out for you [in this brand new presentation.]( A currency war works like a price war. It's the repeated competitive cutting of prices below competitors'. In a currency war, central banks repeatedly devalue their currencies to undercut each other. For some industries, like the airline industry, a price war can only drive prices down so far. But in the literal moneymaking business, a price war can lead currencies into oblivion because fiat money can be created infinitely. Immediately following the release of Trump's dollar comment, the U.S. Dollar Index dropped 0.7%. [Trump dollar comment apr 13 017] The drop was well justified. President Trump has shown his willingness to wage battlefield war. And now, the WSJ interview shows his interest in fighting a currency war as well. Despite being officially decoupled for over 45 years now, the price of gold still trades inversely to the U.S. dollar for the most part. Instability in the dollar will serve as a complimentary catalyst to geopolitical breakdowns that will continue to drive gold prices higher and the broader equity markets lower. Despite recent upward movement, gold is still a buy. Here are three easy ways to invest right now... Buy physical gold bullion: Physical bullion is the most direct way to invest in gold. It can be purchased from retail coin and bullion dealers as well as online. However, be aware that there are price premiums attached to physical gold. And be sure to first secure a place to sell your bullion when it comes time to divest. Buy large gold mining stocks: Mining stocks provide greater investment yields than their underlying commodities but are also subject to more risk. Large, international gold producers like Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM) reduce risk through global diversification of their assets and tend to be the safest among gold stock. Buy gold royalty and streaming stocks: Gold royalty and streaming companies are not miners. Rather, these firms provide upfront financing to other companies developing gold projects in exchange for future royalty payments or streaming purchase agreements. For investors, large gold royalty companies like Royal Gold (NASDAQ: RGLD) reduce much of the risk associated with the operation side of mining with a very diverse portfolio of royalties and streaming agreements from mines around the world. There's also a third war President Trump is preparing to wage right here in the U.S... and historical context shows just how bad it could get. [Find out what it is and how to protect yourself.]( Until next time, [luke signature] Luke Burgess [[follow basic]@Lukemburgess on Twitter]( In his early 30s, gold and natural resource investor Luke Burgess managed to do something most traders never achieve in a lifetime. After being bullish on gold starting in 2004, he exited all of his precious metal positions just eight weeks prior to the correction in gold prices beginning in October 2011… the exact top of the market. But after watching gold and the natural resource market continue to suffer month after month, Luke jumped back into the game and is more bullish than ever. As an editor at [Energy & Capital](, Luke’s analysis and market research reaches hundreds of thousands of investors everyday. Luke is also the investment director of Angel Publishing’s new Secret Stock Files. newsletter, which helps investors leverage the future supply/demand imbalance that he believes could be key to a cyclical upswing in the hard asset markets. For more on Luke, go to his [editor’s page](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [How They Hid An Entire Stock Exchange Right Under Your Nose]( [The Trade Most Investors Are Afraid to Make]( [Invest in the New Warren Buffett]( [How to Become a Marijuana Millionaire]( [The Greatest Market to Emerge Since Dot-Com]( Related Articles [Invest in the New Warren Buffett]( [The Trade Most Investors Are Afraid to Make]( [Tech Startup Yext Goes Public]( [Is the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ) about to Sell Off?]( This email was sent to {EMAIL} . It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. 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