Quantcast

Election May Impact Near-Term Action in Gold & Silver

Nov. 3rd is not likely to put an end to uncertainty...

(Clint Siegner, Money Metals News Service) Metals broke out earlier in the year because there has likely never been so many fundamental reasons to buy gold and silver.

We’ve seen economic turmoil, political strife, social unrest, a $3 trillion federal deficit, and a dollar weakened by fiscal and monetary stimulus – all happening at once.

How the markets finish the year will depend on whether these conditions persist.

The near-term bearish scenario for metals would probably have something in common with 2016.

...article continued below
- Advertisement -

Donald Trump wins and investors feel more confident.

They could focus on buying risk assets, and they could be less motivated to buy safe-havens.

This time around, however, the election is not likely to put an end to uncertainty.

The far left would have to accept a Trump victory without erupting into widespread social unrest, and the fear surrounding COVID would need to subside.

...article continued below
- Advertisement -

In such an environment, the equity markets could rally, and the Fed may not have to inject more monetary methadone.

Investors could rationalize multi-trillion-dollar deficits and expect widespread unemployment will diminish.

The near-term bear case for precious metals hinges on the restoration of general investor confidence.

If they can see 2021 being a better year, then demand for physical metal could wane, as it did after Trump’s first victory four years ago.

The bull case for metals lies in continued, or escalating, uncertainty.

Gold and silver investors will be highly motivated should Joe Biden win the election.

They will anticipate higher taxes, more economy crushing lock-downs, and even more debt funded bailouts and spending.

Regardless of the outcome, Americans could become even more polarized as social unrest escalates.

Bear / Bull Market

An even more contentious debate on how to respond to the ongoing COVID pandemic could ensue.

A President Biden would lead the effort to close more schools and businesses and further limit gatherings using the heavy hand of the federal government.

In this scenario, the recovery narrative falls apart.

Investors accept the nation’s economic plight is not good and likely to worsen.

The conventional markets begin reflecting a darker reality.

The Fed responds with the next round of stimulus, even more massive than the last.

The dollar weakens and precious metals surge.

The election results are one key variable in forecasting how gold and silver markets might finish the year.

Right now the prediction markets, and the polls, point to a Biden victory.

But the pollsters weren’t even close to correct 4 years ago.

The next couple of weeks should be exciting, one way or another…Original Source

Clint Siegner is a Director at Money Metals Exchange, a precious metals dealer recently named “Best in the USA” by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

- Advertisement -

TRENDING NOW

US Sues Texas to Block State Troopers From Stopping Illegal Immigrants

(Associated Press) The Biden administration sued Texas on Friday to prevent state troopers from stopping vehicles carrying migrants on grounds that they may spread...

Restaurants Fight Cities Trying to Ban Gas-Powered Stoves

(Jon Miltimore, Foundation for Economic Education) State Rep. Tommy Vitolo recently explained why a plan to ban gas stoves in Brookline, Mass., was scrapped. “Go...

MURDOCK: Race-Hustling CRT an Affront to 150+ Years of Black Progress, Achievement

(Deroy Murdock, Headline USA) Far more than a mere slap in the face, Critical Race Theory is a brass-knuckled beat down of white and...

House Dems SHOCKED That Trump Asked DOJ to Declare Stolen Election ‘Corrupt’

(Headline USA) Democrats engaged in a partisan display of political theater on the House Oversight Committee feigned shock and indignation that then-President Donald Trump...

Is Corporate US Media Finally Rejecting ‘Russian Collusion’ Narrative?

(Aaron Mate', RealClearInvestigations) For more than four years, Western media outlets have exhaustively claimed that President Vladimir Putin of Russia waged a sweeping influence...

Ashli Babbitt’s Mom Was Told Sen. Feinstein Had No Time for Her

The mother of Ashli Babbitt revealed this week that when she called the office of Sen. Dianne Feinstein, D-Calif., office after her daughter was...

Cuomo Begs Employers to Force Return of Workers He Drove Away w/ Lockdowns

Democrat New York Gov. Andrew Cuomo begged employers to bring their employees back to the office by Labor Day, claiming remote work could put...

Grassley Fumes at NIH’s Weak ‘Explanation’ for Wuhan ‘Gain-of-Function’ Research

Sen. Chuck Grassley, R-Iowa, slammed the National Institutes of Health for failing to explain why federal grant money was given to China’s Wuhan Institute...

Freedom Caucus: Cheney, Kinzinger ‘Chose to Leave’ GOP; Pelosi’s ‘Reign’ Must End

Republicans in the House Freedom Caucus are pushing GOP leadership to expel Reps. Adam Kinzinger, R-Ill., and Liz Cheney, R-Wyo., from the conference, arguing...
- Advertisement -