Categories: Base Metals / General Market Commentary / Precious Metals
Topics: General Base Metals / General Market Commentary / General Precious Metals

COPPER CALLS GOLD BOTTOM ON TRUMPHORIA SURGE...

COPPER CALLS GOLD BOTTOM ON TRUMPHORIA SURGE...

Last week was highly unusual. Despite not winning the popular vote, Trump won more seats than Hillary Clinton and ended with a clear majority, contrary to what opinion polls projected. One of the more bizarre spectacles by the end of the week was that of the leading protagonists in the race exchanging niceties, after weeks and months of slagging each other off. To remain true to form, what Trump should have said to Obama, in front of the cameras, when he met him at the Oval Office, was “See, despite you telling the electorate for weeks that I was unfit for the office of President, the people have voted for me to be the 45th President of the Union. Now give me the keys and the folders – and I don’t expect to see you here when I return in January.” However, what transpired was very different because nothing was at stake, so they returned to vacuous diplomatic niceties for the cameras.

The reaction of the markets to the election was quite dramatic. Seemingly infused with the idea that Trump would live up to his election promises and make everything right with a sweep of his hands, the markets surged and the S&P500 index broke out upside from its bearish Dome pattern. Gold and PM sector investments were dumped in favor of the broad market. Copper rocketed higher at the prospect of the proposed massive infrastructure spending. There is just one problem with all this; politicians of all stripes have been digging a massive crater under the economy for decades now, running up astronomic deficits and endlessly expanding the money supply and also creating a towering derivatives overhang, as well as outsourcing jobs to other countries and wasting fortunes on overseas wars, so Trump is not going to succeed in sweeping these problems away with a wave of his hands, and the talk of doing so was to a large extent electioneering talk, as the population at large will believe what they want to believe. For example, if Trump wants to rebuild the crumbling infrastructure of the country, which should have been done with the money the Neocons diverted to their empire building please Israel foreign military misadventures, the only way he will have sufficient funds will be thanks to helicopter money, and that means inflation which will drive gold and silver higher.

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