As the US presidential election is approaching a decision, the climactic drama has resulted in a drastic surge of gold prices. Though we can’t directly correlate the price of gold to the current election circumstances, there’s a convenient coincidence in timing. The currently low interest rates and international trade tensions as a result of the Trump administration’s actions have spiked the global market, giving gold some real room to maneuver. The anticipation of a result is adding to the chaos, but it’s doubtful that the outcome will significantly impact gold. It doesn’t matter much if Joe Biden or Donald Trump win. In both cases there are economic factors that will create opportunities. The real winner will be Gold.
A 57% rise in gold prices since Trump stepped into office in 2017 is no joke. No joke at all. The way America has created uncertainty within international markets has increased the appeal toward safe investments like natural resources, particularly gold. Historically, the price of gold always increases. It’s safe to say that it will continue to do so as it’s a finite resource with limited quantities available. As demand has continued to increase, so have the prices. Just comparing the last two years, gold sales have tripled! With this continued interest in gold, it’s very likely that we will see gold prices increase in the near future.
A Shift in Politics
Both parties will create advantageous situations for those who own or want to own more gold. Trump’s business- friendly policy will continue to support the momentum that the stock market is currently riding if he maintains his seat in the Whitehouse. With a positive trend in global trade, gold will follow suit and continue to gain value. If trade tensions continue, the volatility will still present gold investment funds as particularly appealing options for investors of all wallet sizes. A win for Biden, on the other hand, may lead to heavier taxes and stock market corrections. It’s quite plausible that this situation could further increase gold’s appeal, funneling big dollar value from investors looking to reposition themselves and hold assets with secure long-term value. In either case, it’s good news for gold and good news if you already own some.
How Could You Benefit From The Rise in Gold Prices?
Whether you already own gold or not, the time to buy will always be right now. Whenever it is that you read this article, consider this part to be carved in stone and perpetually accurate. Over the long term, the price of gold has not and most likely will not ever suffer a loss. By keeping an eye on the market, you may pick up on slight corrections or dips. If you happen to buy a large quantity at a slightly lower price, the average cost of your holdings can be brought down. Generally, though, the price will continue to go up and you will end up losing money every month that you wait.
Will Gold Win The Presidential Election?
Yes! Every time! When dealing with consistently performing natural resource stocks, it pays to buy and to continue buying. It really is as simple as that.