DeWaal Calitz
A potential Trump victory in the upcoming U.S. election could have significant implications for both global and South African economies. According to reputable sources, the impact on the U.S. dollar and emerging market currencies like the South African Rand (ZAR) could be pronounced.
Political uncertainty and economic policies under Trump's leadership often drive investors toward safe-haven assets like gold. The heightened uncertainty and potential for increased inflation due to his policies could strengthen gold prices. Market volatility and geopolitical risks typically associated with Trump’s administration further bolster gold’s appeal as a secure investment.
For the ZAR, Trump's "America First" policies might lead to trade tensions, impacting South African exports to the U.S. and increasing global economic uncertainty. This could weaken the Rand, making gold an even more attractive investment within South Africa as a hedge against currency depreciation.
In conclusion, given the potential for increased market volatility and a weaker Rand, investing in gold appears to be a prudent strategy for South African investors should Trump win the election.
Sources: Market Watch, Bloomberg, Financial Times
