Trump’s Obamacare repeal fail could spell doom for other initiatives – Blanchard

Here’s comment from theCEO of one of the USA’s biggest gold dealers suggesting that President Trump’s failure to push his health care changes through Congress could suggest he may also have difficulties in persuading Congress to agree some of his other proposed key reforms – notably on taxation and infrastructure.  The end result could be strong growth in the precious metals markets he avers.

After a post-election equities march to record highs dubbed by some as “the Trump rally,” the new president’s failure to deliver on Obamacare repeal and replacement may spell similar doom for his tax reform initiative, says the CEO of Blanchard & Co, which claims to be America’s largest precious metals investment firm, and gold is poised for significant gains if that happens.

“President Trump’s tax reform plan has been largely predicated on the savings the federal government would have seen had Congress been able to repeal and replace Obamacare,” says Blanchard and Company President and CEO David Beahm. “The stock market rally above 21,000 was largely driven by Wall Street’s expectation that corporate tax cuts were a given, but I think those prospects are looking much less certain today.”

As the equities markets begin to shed some of the gains they’ve seen since Trump’s election victory, and as political analysts begin to advance the comparison between Watergate in the early 1970s and the FBI’s ongoing investigation into the ties between associates with the Trump campaign and Russian hacking into the U.S. election, a new geopolitical uncertainty begins to take shape that will impact the markets even more.

“Two of the big historic drivers for the price of gold have been risk and global geopolitical uncertainty, and over the last 25 years dating to the first Gulf War, the Middle East has been the hotbed for a lot of that uncertainty,” Beahm said. “Now that we have a sitting President in the middle of a growing FBI investigation placing the world’s top superpower into a potential storm of geopolitical uncertainty, this could certainly unhinge equities markets and drive gold much higher.”

Until there’s some clarity that an investigation into the president and his team has concluded and found no wrong doing, the markets are likely to be volatile and risky. But gold should see increased investor demand to hedge stock risk, and the precious metals complex could see strong growth as a result, Beahm said.

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Gold Bull And Super-Bull Set Their Pricing Agendas – Seeking Alpha article

Summary
  • Top coin dealer CEO sees continuing gold and silver price rises through 2016.
  • Gold newsletter writer turns super-bull – sees gold matching all time high within the next year.
  • Reasons for positive assessments of prospects for gold and silver.

To read the article, published on Seeking Alpha last night, click on: Gold Bull And Super-Bull Set Their Pricing Agendas…

Gold and silver prices to continue higher through 2016: BLANCHARD

Blanchard & Company, CEO David Beahm says tepid GDP a sign of more highs for precious metals

NEW ORLEANS –

After a 30-year record price increase in gold during the first quarter of 2016, Blanchard CEO David Beahm feels both gold and silver are poised to attain to higher highs during the remainder of 2016 for several reasons, including decreased consumer spending evidenced by weak GDP growth, and a stagnant global economy that has generated new negative-interest stimulus efforts by various central banks.

“Gold prices should continue to climb throughout 2016 as investors look for stable assets during what appears to be a troubling time ahead,” Beahm said. “Consumer spending accounts for two-thirds of America’s total GDP, but through the first quarter of 2016 it is about one-third less than predictions for the year and well below its performance in 2015. This is not a sign that the economy is flourishing – quite the contrary in fact.”

Beahm said that the outlook for any real overall growth in GDP is dependent upon increased consumer spending because economic headwinds from abroad, business capital spending, financial market turmoil and inventory accumulation are playing a big role to stymie growth without it. Gold and silver have already benefitted from this lack of growth and should continue to over the long-term.

“As we await first quarter GDP data and the inevitable revisions to forecasts for the second quarter and beyond, here is a sobering factoid – despite having some the smartest minds in Washington, in five of the last seven recessions the Fed was oblivious to them at the beginning of the quarter each began,” Beahm said. “With equities markets near all-time highs, yet fundamental economic data painting a less rosy picture, Blanchard sees precious metals that are still at attractive price levels with lots of upside.”

Beahm also said that the global attempt to re-energize economies using negative interest rates is going to fail investors, with the outlook for savers being particularly bleak.  “As governments consider the idea of negative rates, investors should realize there is a distinct possibility that this may be a stimulus effort of last resort as economies slow down. Precious metals are the right investment diversifier to protect wealth when inflation increases and the economy gets volatile,” Beahm said.