With the globalization, many industries’ prices depend on the actions of influential countries and their business decisions related to the outside market. That holds true for exporting tycoons such as China, South Korea, Japan, and Germany, as they are the countries who export the most goods. This bears the question: How are prices like the price of metals, of oils and of gas being affected by the business and political decisions of such countries? Matt Badiali, Chief Resource Investment Expert of Banyan Hill Publishing since 2017, has given more insight into the persecutions of such political and economic changes. Matt Badiali currently lives in Delray Beach, Florida. The U.S. and China trade-war, more notably, has tremendously affected the prices of metals.
This war has been undergoing since the United States has stopped exporting as many resources and materials as it used to, but at the same time, national and international companies are importing materials from countries like China. President Trump, realizing that this was a problematic situation aggravated by globalization, is trying a state-protection philosophy, so he started applying taxes to imported products. According to a link shared by Matt Badiali in his Twitter profile, this philosophy started with taxes applied to solar panels and steel. Because of that attitude, China replied by earmarking for tariffs $130 billion worth of products from the U.S.
Both countries are extremely hurt by these moves, China having a weakened national economy and many manufacturers hurt by a lower number of orders while the United States suffers from companies showing disgust and not complacent with the decisions made by their country. Matt Badiali stresses that this war has severely dragged the prices of metals and many experts, including the Alibaba co-founder Jack Ma, believe that the U.S.-China trade war, with other countries also entering the race for national preference, will continue for many years, especially if the U.S. stays with the same state protection. Because of this war, metals’ values are close to their recent lows, and studies show that it shouldn’t increase as much for a while. Many investors who have minerals in their investment portfolios are also worried about this fact.
Chinese billionaire and Alibaba co-founder Jack Ma believes the trade war could drag on for decades. Base and precious metals are likely to stay near their recent lows. https://t.co/CD92hlAeYq#TradeWar #China #Trump #PreciousMetals #Investing #StockMarket #NASDAQ #NYSE
— Matt Badiali (@MattBadialiGuru) September 25, 2018