What a Trump Victory Means for Commodities: A Closer Look at Gold, Oil, and Copper

Opportunities and Risks Ahead...

So, Trump is in - love him or hate him, it’s incredible how polarizing this election has been and how massive this “sweep” is.

What’s really crazy (to me at least) is Harris fared much worse than Biden in the 2020 election across the board.

Analysis by CNN delivered Wednesday revealed that Harris failed to out perform her boss, by three percent, in any state, and it shocked Jake Tappler, which in of itself is now going viral.

'Holy smokes,' Tapper exclaimed when presented with a map illustrating her lackluster performance.

'Literally nothing?' King confirmed.

But, as always, lets dive into the specifics of what this means and how we’re making money from it.

First, let’s break down the situation with gold - it’s a bit of a mixed bag right now, kind of like oil.

In the short term, it’s looking a bit shaky, but the medium to long-term picture is much brighter.

Gold's taken a hit, dropping about 2.4% as the dollar strengthens (with the DXY up 1.93%).

It seems gold has been ignoring the recent uptick in U.S. real rates, which have climbed to around 2% from a low of about 1.55% just weeks ago.

But with the dollar flexing its muscles, gold is feeling the pressure this morning.

You’ll find that the more sensitive gold stocks - i.e. those with higher cost structures or more financial leverage - are taking a hit.

But looking beyond this immediate blip, there's a good chance we'll see a rebound as rate cuts continue rolling out.

Now, here’s where things get interesting: one of Trump’s big moves could be raising tariffs on imports.

This push is aimed at getting foreign companies to set up shop in the U.S., which could turn out to be inflationary. (costing the consumer more)

And as you likely already know, inflation is a massive driver for gold, especially in the long run.

On top of that, Trump’s plan to ramp up spending and run higher deficits…

Aloha, higher debt levels, which adds yet another layer to the gold investment thesis.

So, while we might be in a bit of a rough patch now, for a few days or weeks at least, keep your eyes on the horizon… The longer-term potential for gold remains more bullish than ever, IMO.

Now, let’s talk oil.

With Trump back in the mix, we could see a shift in domestic oil production policies.

Expect an emphasis on boosting U.S. energy independence, which could drive domestic prices lower in the short term as supply increases.

However, with tensions in the Middle East and potential disruptions to foreign oil supplies, international prices can still remain volatile.

This means we could see a divergence where domestic oil prices stabilize or drop, while foreign oil remains on the upswing, influenced by geopolitical factors. But, we’ll see.

As for copper, it’s a crucial commodity for infrastructure and manufacturing.

If Trump’s policies lead to increased spending on infrastructure projects, we should see copper prices move higher as demand rises.

The push for domestic manufacturing could also mean more demand for copper in electric vehicles and renewable energy projects, which are essential for a greener future.

But, my favorite of all… Elon.

Tesla's stock has surged to $285.

Why? Because Elon x Trump are buddies, Elon has invested $130 million into Trump, and Elon will be appointed to lead a new Department of Government Efficiency aka DOGE. (😂)

The single greatest name of any government department, ever.

This initiative aims to streamline government operations and reduce waste.

And Musk's track record in optimizing operations at Tesla and SpaceX, and everything else (I ALWAYS talk about ability to execute as something that seperates from the pack) positions him well for this role.

His involvement will influence policies affecting various sectors, including energy and manufacturing, and likely massively benefiting companies like.. you guessed it, Tesla.

While short-term challenges exist in Gold, the medium to long-term outlook for gold, oil, copper, and Tesla, and in general, most of the markets, remains extremely positive.

Significant opportunities await, and I think the Dow will be seeing 50,000 before it see’s 40,000 again.

Happy Hunting!