Brett Arends suggests that the Donald preferring gold bullion to cash is probably the beginning of the end of the incredible run up in gold prices. From Marketwatch:
The Donald has just accepted gold bullion instead of cash. According to my colleague at the Wall Street Journal, Trump accepted $176,000 in bullion as a security deposit on space at 40 Wall Street from Apmex, a precious metals dealer.
Trump used the occasion for some publicity, and a dig at the Obama administration. “It’s a sad day when a large property owner starts accepting gold instead of the dollar,” Trump said in an interview. “The economy is bad, and Obama’s not protecting the dollar at all….If I do this, other people are going to start doing it, and maybe we’ll see some changes.”
When a self-promoter like The Donald jumps on a bandwagon, you know it’s getting a little old. For all his big reputation, Trump’s career over the past two decades is littered with the wreckage of high-profile deals he cut at the peak of each boom. Think: Trump Taj Mahal casino (bankruptcy, 1991). Trump Hotels & Casino Resorts (2004). Trump Entertainment Resorts (2009).
Or the “Trump International Hotel & Tower,” a luxury condo development in Fort Lauderdale planned and built in… happier times.
News that Trump is backing gold comes after the metal has already skyrocketed in price. Gold has so far jumped nearly 30% so far this year, and more than 500% in a decade.
[continues at Marketwatch]