Mining Companies Seen as Winners After Trump Victory
A few months back I did a short article on whether Donald Trump would be good for the mining industry. My reasoning at the time was that so many politicians seem to side for the more liberal thinking and so called greenies and being as mining in general is sort of frowned on or hated to be exact, I concluded that Donald would be more of a pro mining guy because of his roots. You see his grandfather Fredrick Trump was a hotelier in the Yukon during the Klondike goldrush and people never like to forget their past. It was gold that got the Trump empire started.
Well today after the US election, I am sort of proud of my assumption that I made back at that time. It turns out that there was an article written in the Wall Street Journal today where the headlines read, "Mining Companies Seen as Winners After Trump Victory".
Excerts from the news article state:
Mining and metals company stocks surged on Wednesday after the election of Donald Trump, as investors looked to the president-elect's promises to revive U.S. manufacturing and rehabilitate the country's aging infrastructure.
Swiss commodities giant Glencore PLC was up 3% while the world's second largest miner by market value, Rio Tinto PLC gained 2.5%. ArcelorMittal, the world's largest steelmaker, was up 3.9%.
Overall, in London, the FTSE 350 mining index was up 3.4% compared with a 0.2% drop in the FTSE 100 index. Among the biggest winners here was Mexican precious metals producer Fresnillo PLC, which rose 9%.
One of the key notes to the write up was, "The market is telling you that the mining sector is the biggest beneficiary of a Trump election, particularly precious metals." Mr. Trump had made remarks regarding rejuvenating the U.S. coal industry a large part of his platform, but that wasn't seen as the main factor driving global mining company stocks higher.
At first sign of a Trump win, Dow futures were off by 700 points and gold rocketed up almost $50 an ounce. However once trading started the following day it was all back to normal as if nothing really happened.
So if you voted for Trump and are pro mining and resource, maybe the next four years will be a bit rosier than the past four years. Us gold bugs are long over due for a bull run on metals.
If you enjoyed this article, please feel free to share. When seeking out mining stocks always use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.