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Trump’s Economic Team is a Gathering of Goldbugs

krugman trumpAccording to Paul Krugman, Trump was installed by Putin and his economic team is a ‘gathering of goldbugs.’ I’m sure he meant that last part in a condescending way, although I view it as flattery.

We all know that John Paulson has been bullish on gold and predicted the price of gold would rise in proportion to Bernanke’s dollar printing. Apparently Mnuchin, Trump’s pick for Treasury Secretary, is guilty by association. As Krugman pointed out:

Treasury goes to a guy with little public profile, but hangs out with John Paulson (who is also close to Trump). Budget director appears to be John Bircher and conspiracy theorist. Birchers want return to gold and silver, Mulvaney seems to agree.

Mick Mulvaney is Trump’s pick for Budget Director. He gave a speech at the John Birch society in which he criticized the Federal Reserve and said they “effectively de-valued the dollar and choked off economic growth.” Krugman also derided Mulvaney because he praised bitcoin as a currency that is “not manipulatable by any government.”

I guess I’m not Krugman’s intended audience, as the more I hear about Trump’s economic team, the more I like them. I assume he was making fun of the fact that they believe in honest money, limited in quantity, that can’t be printed out of thin air. Even more threatening to Krugman’s worldview is a new money like Bitcoin that is outside of government/central banker control and manipulation. How dare people not use the fiat paper that he and his bankster friends created!

It is an inconvenient truth that Bitcoin is up 3x since Krugman said it was stupid. It has been the best performing asset of 2016, in fact. Funnier yet, Bitcoin hit a new multi-year high above $800 around the same time that Krugman went on his tirade against Trump’s appointees. But far be it for such as esteemed economist as Krugman to allow facts to get in the way of his arguments.

Of course, Krugman doesn’t have a very strong history of forecasting:

paul krugman quote internet

As a contrarian indicator, it probably makes sense to back up the truck on gold and bitcoin every time that Krugman opens his mouth. Either way, I contend that Trump’s presidency is going to be bullish for gold prices. Whether his administration is able to increase gold’s role in our monetary system, bring attention to its virtues, eliminate the price manipulation or simply continue running up the debt, it all bodes well for gold investors.

Speaking of precious metals, both gold and silver bounced sharply this morning off their respective lows. Mining stocks also closed the day in the green, after dropping roughly 2% in morning trading.

One of our favorite junior gold miners bounced from a morning loss to close the day up more than 7%. They just completed construction of their first gold mine and celebrated their first gold pour last month. Commercial production is expected during the first quarter of 2017.

The company recently announced drill results that vastly exceeded expectations. The intercepts were significantly longer than the average mining width and grades significantly higher than the reserve grade. This included an intercept of 12.6m at 16.5 g/t gold!

In addition, they were uplisted recently, increasing their exposure and investor pool. The stock is down over 30% in the past month and we believe it is offering investors an incredible buying opportunity on this dip.

Learn the identity of this gold stock and get all of our top gold and silver stock picks, trade alerts and the monthly newsletter for less than $1 per day by clicking here.

By | 2017-03-23T14:06:46+00:00 December 20th, 2016|Gold & Silver Commentary|

About the Author:

Jason is the founder of He previously worked in data analytics for the world's largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.