Trump’s tax and spending bill to spur prices of precious metals — Silver Academy

The Silver Academy expects US President Donald Trump’s tax and spending bill to accelerate price growth in the country and boost precious metals. 

The bill is estimated to cost $5 trillion. Injecting this amount of money into the American economy could result in hyperinflation and a devaluation of the dollar.

This enhances the role of gold and silver as safe-havens. Central banks continue to purchase bullions. In addition, HSBC says that wealthy investors from Hong Kong have increased their gold portfolio allocations from 4% to 11% in just one year. In mainland China, this figure jumped from 7% to 15%.

Global gold allocations are now barely 0.5%. Their return to the historical average of 3% would spark an unprecedented rise in both gold and silver, say analysts at the Silver Academy. 

Prices of the gray metal are expected to surge, catching up with gold. Silver could hit $50 this summer and grow tenfold by 2028. Meanwhile, the yellow metal’s prices could soar by five or six times.