Renowned economist Peter Schiff advised investors to buy gold dips amid concerns over potential inflation following Donald Trump‘s presidential election victory over Kamala Harris.
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What Happened: “The best Trump trade now is buying the dip in gold and gold mining stocks,” Schiff posted on X. “Cutting taxes is easy. We know from experience that substantive spending cuts are impossible. Even Reagan couldn’t do it, despite making greater promises to do so. Trump will make inflation great again.”
Trump secured 277 electoral votes and 51% of the popular vote against Harris, according to Associated Press figures.
Major gold mining stocks, including Barrick Gold GOLD, Newmont NEM, and Royal Gold RGLD, declined over 2% on Wednesday, while gold spot prices traded at $2,656, down 0.09%.
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Why It Matters: A recent Wall Street Journal survey found that 68% of economists expect higher inflation under Trump’s economic policies compared to Harris’s proposals, up from 56% in July. The survey, conducted October 4-8, showed only 12% anticipated higher inflation under Harris.
Trump previously announced plans to appoint Tesla Inc CEO Elon Musk as “Secretary of Cost-Cutting” to lead a new government efficiency commission. Speaking at New York’s Madison Square Garden, Musk claimed he could reduce federal spending by $2 trillion. The commission would conduct “a complete financial and performance audit of the entire federal government,” according to Trump.
Economist Justin Wolfers raised concerns about potential consumer behavior, noting on X: “I wonder whether we are going to see a burst of spending on consumer durables in Q4, as people pull forward spending on big ticket items ahead of the tariffs.”
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