In this installment of U.S. Money Reserve Market Insights, Sales Manager Patrick Brunson discusses how the recent tariffs could escalate to trade wars.
How Will a Trade War Affect You? – Video Transcription
Patrick Brunson: 00:00
Patrick Brunson: 00:00 Good morning, thank you for tuning into Daily Market Insights. Over the past week and especially the last couple of days, one of the biggest topics that’s been discussed in mainstream news is tariffs. We’ve actually had two of our country’s biggest allies come out recently and literally come out and say that we are entering into a trade war. The biggest question is what is that going to do and how is that going to impact the United States and its economy? It’s the biggest question we’ve been getting over the past few days. Well there’s a lot of different directions it could go. One of the biggest things that worries a lot of consumers is the fact that right now the majority of the over-consumption is coming from China. However, Mexico, Canada and the European Union are our first, third and fourth top allies and Trump’s now coming out and putting extra tariffs against countries like the European Union and Mexico and Canada.
Patrick Brunson: 00:58
New Speaker: 00:58 I mean usually our trade percentages with the European Union are less than 3% and he’s moved them up to more than 10%. So the biggest question is, why? At the end of the day we should be getting together with these three nations and coming together to put more pressure on China, where the majority of our over-consumption is coming from. The other biggest thing is this, they’re putting tariffs on things like steel and aluminum and it’s in a way to try and stimulate American produced products and I get that, but these companies, they may choose to continue to buy these types of metals from these other countries, and if they do, they’re not just going to take those tariffs on the chin, they’re going to turn around and jack up the prices on the products that they’re producing so it comes all the way back down to the consumer.
Patrick Brunson: 01:49
New Speaker: 01:49 So at the end of the day we got to ask ourselves, are these tariffs really the best thing for our economy and the growth moving forward. At the end of the day when it comes to all of this, the economy is what’s in jeopardy. A trade war never ends in a good, good solution. It always ends up in major devalued currencies. These countries purposely devalue their currency to make them more desirable as trading partners and ultimately at the end of the day, the people who take the biggest hit are the consumers who buy their goods and services with U.S. dollars. When it comes to this type of scenario, gold typically performs best, however, this is the one area where you can take a portion of your portfolio and hedge your bet on the dollar during this trade war, if it gets any worse. Gold can really increase during times when currencies are dropping in value, and now is the time to prepare for this. Before this trade war gets any worse, you want to make sure that you put your portfolio in a position that can weather the storm, if you will.
Patrick Brunson: 02:52
New Speaker: 02:52 With that being said, you can also pick up our 2018 Gold Global Forecast report by clicking on the link below or calling the phone number on your screen. This is going to give you a good projection or outlay of what we project this market to do in the coming months and years. There’s a lot of lot of things happening within the economy as well as the stock market that point to very bullish prices for gold. So if you want to get more information on gold itself, you can also call us and speak with one of our account executives and they can get you started and send you a Gold Kit information packet so you can start looking at what your options are in the physical gold market. For today, that’s all, we’ll talk to you next week. Thank you for tuning into Daily Market Insights.