As we draw closer to the Presidential election the future of our county’s financial stability is more uncertain than ever before.
The US Congress goes on recess this Friday, without approving any type of new economic stimulus package. According to economists, that could lead to a double-dip recession, which certainly won’t help the dollar.
Meanwhile, with flu season right around the corner and politicians on the campaign trail, the odds of a second COVID-19 wave are rising rapidly. The last time that happened, silver broke $27. Many are anticipating it to rise even higher on this iteration.
Presidential Elections Will Cause Consumer Confidence to Waiver
The U.S. presidential election is approaching fast and possible changes in who will be the next president may undoubtedly affect the precious metals market. Brewing US-China trade tensions, economic downturn, along with the Fed’s expecting near-zero interest rates through 2023 may prompt investors to seek better returns in safe-haven investments.
According to Fox Business, gold prices are set to soar. Laurence Balanco of Hong Kong-based capital markets and investment group CLSA Ltd. says “[Gold] has worked off the momentum, sentiment and positioning extremes seen at the peak and looks set to resume its uptrend.”
Even so, there doesn’t seem to be a feasible political solution to the current crisis. While many hope to return to normalcy in the next four years, the major reasons for investors to own precious metals remain compelling.
Uncertainty surrounding this year’s presidential elections in the United States may cause worldwide disruption in November, regardless of which party wins. A new regime would bring about sweeping changes. A second term for Trump would rattle a lot of cages.
The situation clearly points to a weakening economy and a decline in the dollar. Precious metals, like silver and gold, should rise in price, as they tend to do in these scenarios. Election years, historically, have provided silver bulls “golden” opportunities.
Biden Win Could Drive Silver Market Higher
Trump’s policies have helped fuel market uptrends, but many positions are overbought because of them. Some expect the bubble to burst in Q1 next year and an uptrend in silver and gold if Biden wins. Consumers tend to always look for safety nets during an administration change. The dollar, most likely, will not be one of those safety nets, but silver and gold could. Start preparing for the running of the bulls in November.
Learn how to diversify and protect your retirement income with safe-haven investments like gold and silver by calling American Hartford Gold at 800-462-0071.