Dave Russell, CEO, GoldCore Ltd
This week, Donald Trump’s inauguration marks a significant shift in the global landscape. It also brings some economic uncertainty to Ireland. Numerous institutions and commentators have highlighted the risks the new US administration poses to our multinational-focused economy and public finances.
Trump’s “America First” policies, including plans to slash corporate tax and incentivise industries to return production to the US, threaten Ireland’s reliance on US tech and pharmaceutical multinationals. Warnings about this dependency have grown louder over the years – are we now about to feel the ripple effects?
As Ireland’s largest bilateral trade partner, the US wields significant influence over our economy. Tariffs or policy changes affecting US multinationals could harm net exports, investment, employment, tax revenue, and overall economic activity. The Irish Central Bank recently warned that such shifts might also impact future investment decisions by these companies, which currently employ 11% of Irish workers.
The dependence on corporation tax receipts from US multinationals is particularly concerning. Yet only a fraction of the recent €15bn windfall from US companies has been saved long-term. The Central Bank recommends setting aside all excess tax revenue, not just a portion, to prepare for potential shocks.
This uncertainty highlights the importance of diversified investments. Trump’s return isn’t the only factor prompting investors to reassess their portfolios; a quick glance at the headlines does not give one faith in the overall stability of the geopolitical landscape. Precious metals like gold have historically served as safe-haven assets in times of global flux, retaining value as a hedge against inflation and volatility. For Irish investors, allocating assets to physical gold – bars or coins – offers tangible security amid economic headwinds.
As the world watches the unfolding implications of Trump’s presidency, including broader economic shifts, gold remains a strategic choice, offering control and peace of mind in turbulent times.
