President-elect Donald Trump has not been shy about his intentions to implement strong trade protectionist policies through raised trading tariffs, famously stating “tariffs are the greatest thing ever invented" in trademark Trump fashion.

This will probably lead to the selling down of US treasuries, particularly from the likes of China, and so a strong central bank demand theme remains for gold. Just this week, rather timely support for this hypothesis was reported with the People’s Bank of China (PBOC), China’s central bank, resuming gold purchases after a six-month hiatus. This will continue further supporting the gold price in the short and long term.

Gold Miners: The Way to Bigger Returns

Combined with continued global political uncertainty post the US election, leaves for an ongoing supportive backdrop for the underlying gold mining equities to operate in, junior particularly, as a sustained higher gold price should improve free cash flows, which we are already starting to see. This should translate into solid share price performance, buybacks, dividends, and additional M&A.

Golden Prospect Precious Metals Fund offers investors a route, through a UK vehicle, to these smaller-cap global precious metals mining equities, and with enhanced leverage to the gold price. GPM has long been known to do well during gold price rallies, including during periods such as the 2008 Financial Crisis and the COVID pandemic, and low gold price periods, as illustrated in the chart below!