Friday, November 18, 2016

Sprott's Rick Rule On Where Sprott 
Is Investing Client Money, & Why Trump's "Make America Great Again" Plan
Will Not Work
"People are trading the narrative that America will be great again, so the U.S. dollar is very strong and gold has weakened as a consequence. There is a sense that between the Chinese Silk Road and the planned infrastructure spending by Trump that this will drive demand for industrial commodities and at the same time this will strengthen the world economy. I think those premises are wrong. I think 2017 will see one of those unique situations where the dollar moves up as a consequence of the relative strength of the U.S. economy, but I also believe that gold will move higher as well as a consequence of negative real interest rates on a global basis and increasing realization among investors that the debt and deficits of various governments are not sustainable. With regards to the industrial metals, I don’t think the demand creation will be there, but I think prices will move higher as a result of supply destruction. This will be a messier phenomenon but one that will generate larger price increases .. We are carefully deploying capital at Sprott Asset Management into private placements with high-quality companies that we believe will experience significant upside moves ... Looking at the start of 2017, the elites clearly do not like Trump, and this should create a lot of noise as he moves to push his agenda through Congress. That noise should be extremely positive for the gold market. So while it is possible that gold might remain weak at the start of the year, at some point we will see some real fireworks to the upside in 2017."
LINK HERE to the article

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