Will Gold Perform Better Under a Trump or Biden Presidency? Read What the Experts Are Saying

As you might expect, our clients are asking what may happen to metals prices if former Vice President Joe Biden wins the election, and if President Trump remains our President. Of course, no one truly knows. For situations like this we work to source opinions from experts who study metals. In an October 31, 2020 article published by Business Insider and written by Vicky Ge Huang titled: “2020 election investing: Why gold is the winner regardless of outcome,” three gold experts shared how gold could be a winner regardless of the election outcome. A summary of their opinions is outlined below.

Ryan Giannotto, director of research at GraniteShares, “studied the response of gold to every election that took place in the past 50 years. Under a Republican administration, the hard asset gained 37.2% after 36 months, and 34.1% after 48 months. Under a Democratic administration, gold rallied 56.0% after three years, and 98.1% after four years.”

Kevin Rich, global gold market advisor for Perth Mint Physical Gold ETF opined, Whether the Democrats or the Republicans take the White House, further fiscal stimulus is coming. And that’s going to be bullish for gold.

Juan Carlos Artigas, head of research at the World Gold Council, believes that US elections will not have a huge impact on gold’s performance stating Part of the reason is that gold is a global market. While the US is indeed an important component of the overall global piece, there are important macroeconomic drivers that influence gold on a global scale.”

Most convincing for our team members, and supportive of why we are so passionate that people consider investing 5% to 20% of their personal investment portfolio in metals, is Juan Carlos Artigas’ comment, “Nevertheless, whether gold performance has anything to do with the election or not, investors should understand that gold is not only a source of returns, liquidity, and diversification but also a physical asset that has long-term value.”

Source: Huang, V. (2020 October 31) 2020 election investing: Why gold is the winner regardless of outcome. Retrieved from https://www.businessinsider.com/2020-election-investing-why-gold-is-winner-regardless-of-outcome-2020-10

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