A recent marketing email from Trump Coins, a venture selling commemorative coins featuring President Trump, credits the president’s return to the spotlight for the recent surge in gold prices. The email claims that Trump’s economic policies are driving investors back into safe-haven assets. However, this narrative clashes sharply with the views of many economic experts.
Experts interviewed by ABC News argue that the rise in gold prices is not a testament to Trump’s economic success, but rather a reflection of the economic uncertainty fueled by his policies, specifically his widespread tariffs. Professor Paolo Pasquariello of the University of Michigan’s Ross School of Business calls the premise that rising gold prices indicate a thriving economy “completely contrary to reality.” He and other experts point to the fact that gold typically rises during times of economic turmoil, such as trade wars or anticipated inflation.
Since Trump’s announcement of sweeping tariffs, often referred to as his “Liberation Day,” gold has reached record highs, surpassing $3,500 per ounce for the first time. This surge coincides with market tumbles and warnings from the International Monetary Fund about the negative impact of escalating trade tensions on both short-term and long-term growth.
Trump Coins’ marketing email, sent on April 16th, also emphasizes the “political” aspect of the gold price increase, attributing it to Trump’s return to the spotlight and investors’ renewed belief in asset-based security. Yet, experts cite historical examples like the 2008 financial crisis and the recent Russia-Ukraine conflict as evidence that gold’s value often spikes during periods of instability. They highlight another factor: Trump’s policies have eroded confidence in alternative safe havens, such as the U.S. dollar and Treasury bonds, making gold a more attractive option.
Trump Coins, described as the only medallions authorized and endorsed by the former president himself, are just one piece of the extensive merchandising empire Trump has built. One of their offerings, the “Victory Gold Medallion,” is priced significantly higher than the market price of gold, resulting in substantial profits for Trump amid the rising gold prices. While the details of his agreements with the selling company, JBCZ Group LLC, remain private, experts suggest that he has likely benefited handsomely from this venture.
However, when considering investment strategies, experts advise against Trump-branded coins. They suggest that exchange-traded funds (ETFs) are a more efficient way to invest in gold. Solid gold bars, and by extension Trump Coins, are more difficult to resell and may lead to losses when sold at a discount. The rising gold price, therefore, may not be the economic victory that Trump Coins suggests it is.
