Commodity prices may be on the rise thanks to President Trump. Rhetoric from the commander-in-chief signals the U.S. economy is moving towards inflation, which may prove positive for those who have invested in gold, silver, and other metals.
Commodities in History
The 1980s proved lucrative to those who invested in commodities. Prices for gold, silver, and other valuable metals soared in the United States until the 1990s when interest rates began to rise. Increased rates caused the commodity market to enter what some refer to as the bear state. The cyclical nature of the industry, however, began coming full circle in recent years when China’s demand for metals increased. Commodity prices have grown with necessity and now present the possibility of the industry making a comeback.
Leaving the Bear Market
The November 2016 election of President Donald Trump presented a ray of hope for those with money invested in commodities such as silver and gold. The United States president expressed an apparent desire to give more attention to the business sector during his campaign, which is why some companies and private investors were thrilled to learn of his election victory.
In recent months, President Trump has moved to cut taxes in the hopes of benefitting small business owners. Such change in policy is in line with inflation, which could cause commodity values to rise. Some expert economists even believe that inflation could rise as much as two percent under Trump’s administration, which would spur financial swelling.
What Should Investors Do?
Investors can consider expanding their portfolios to include some specific commodities. As said before, the commodities market shows strength only in specific segments. Titanium is an excellent choice of metal since recent aerospace innovations are heightening demand for the product. High-strength titanium tubes that are also lightweight is the best form of metal to invest in because of its many capabilities. Companies can use titanium when building aircraft and various products for residential homes. Titanium is also used to complete paint, toothpaste, and sunscreen mixtures. In fact, titanium dioxide is the main ingredient in sunscreen that shields against harmful UV rays.
Purchasing stocks from titanium alloy manufacturers is the best option for investors looking to get their feet wet in the commodity world. Such a venture may prove to be the safest since alloy manufacturers serve several industries instead of specializing in just one field of practice. Regardless of what type of commodity investors choose, they should take advantage of low values now before inflation again drives the price of precious metals through the roof.
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