The Correlation between Gold and the US Elections
The 2016 US elections have been at the forefront of most conversations around the world. There is building tension and excitement regarding the final outcome. The election could go either way with Clinton or Trump being elected the next president of the United States. These possible outcomes do not just have political repercussions, they also have economic ones. In particular, there are certain trends that have been noticed around election time, whenever it is time to elect a new president. This has to do with gold and the prices of the commodity. Let’s take a closer look.
As you can imagine, investors and traders alike tend to get a little antsy whenever election month rolls around. This is because there is a great deal of uncertainty surrounding the outcome. Furthermore, depending on who is voted into power, there are varying repercussions for the economy, and essentially most other elements of the financial world. One trend that has been observed, however, is the price of gold. Right before the elections in November, experts have noticed that there is a drop in prices.
This is good news for anyone hoping to begin investing in gold bars and coins. Due to the sudden drop in prices, it is the perfect opportunity to enter this particular market. You will be able to get a considerable amount of the yellow metal. If you are wondering what other reasons you may have for doing this, keep reading to find out more.
So the price of the yellow metal may predictably fall before the elections, but what about once a president has been chosen? Well, according to the statistics that have been collected, the value of the precious metal jumps right back up again. This happens shortly after the new president is announced. However, experts have also noticed the trend continuing until the end of the year as well.
This means that if you took advantage of the lower prices before the election, you are now able to make a profit. The precious metal that you now have in your possession is worth a lot more than what you bought it for. This gives you a considerable amount of power in the market.
The 2016 Elections
This year is probably going to be like all the others with the yellow metal experiencing a brief spell of depreciation. Once the elections are over, however, it will quickly gain value once more. The only difference with this year is the uncertainty surrounding Donald Trump. As there is a possibility of him becoming the next president, people are attempting to secure some of their assets in gold. In fact, most experts believe that due to Trump’s current position, gold could be experiencing quite a high for a while. This just makes getting a small amount of the yellow metal even more attractive, considering the circumstances.
Well, this is how you can expect the precious metal to behave on the days leading up to the United State election. Similarly, you can expect predictable results once the election is over. With this information, you can now make an informed decision regarding this commodity.
Sarah Jenkins is a blogger who enjoys writing about money to teach people ways they can grow their wealth!