Ece411,
I've been on a similar path to you having diversified into other resources. I have zinc, coal, even iron ore and sulphate of potash. I sleep a lot better now.
You're right about POG moving differently to last year. Economic data has generally been good, Yellen talking more rate increases, and Gold holding its value strongly. I didn't see that all of last year. From what I can see, the demand for gold (against this backdrop of impending rate increases) is being driven by:
1) The market is waiting to see Trump's tax cuts, deregulation, incentives to do business in the US, and infrastructure spend. Can he get these policies through a Republican congress given their traditional opposition to higher budget deficits and more Government debt? Will they be watered down?
and/or,
2) Will the Eurozone implode? What are the implications for economic growth, national security, Euro banks and debt?
I'm more concerned about Trump's tax reform for now. My gut tells me it won't live up to market expectations, which would mean a sharp sell off in equities and reduced expectations for rate rises. At the same time I'm very wary of a post-election sell-off if Trump pulls it off somehow.
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