The Certainty of Uncertainty Ahead

If you had to pick only one word to characterize the current gold market, it should be volatility. You have the election to thank for this volatility – or, more specifically, the Electoral College. On January 20, 2017, Republican Donald Trump will be sworn in as the 45th president of the United States on the basis of 279 electoral votes, nine more than the American system requires to win the election. His Democrat contender Hillary Clinton, on the other hand, wound up with 228.
 
The volatility in financial markets has less to do with a 51-electoral-vote difference than it does with the anticipation of changes President-elect Trump is likely to introduce to our nation. He has pledged to overhaul, among other things, the Affordable Care Act, the country’s immigration policy, the U.S. tax code, and our international trade policies.
 

 
Asian markets dropped 5% on news of Trump’s ascendancy, and on Tuesday night – election night, the Dow Jones Industrial Average dropped 700 points, only to correct the following morning. According to Bloomberg, on November 9, the day after the election, more than 780,000 futures were traded by 2:30 PM.
 
This exceeds the volume traded this past June 24, after Britain decided to leave the European Union. Meanwhile, after spiking 5% to a six-week high of $1,309.60.40 per ounce, the shiny metal fell on the announcement of President-elect Trump’s victory, slipping today to a closing spot price of $1.178.40.00.
 
The fact that Trump was poised and calm in his acceptance speech, instead of strident and threatening, helped quiet down markets and boost the dollar. For now, at least, Trump cast doubt on whether the Federal Reserve will actually proceed with an interest-rate hike in December.
 
Trump has previously suggested that Fed Chair Janet Yellen has suppressed interest rates. He has also hinted at the possibility that he might replace Yellen and, understandably, there’s talk around Washington that she might resign.
 
Here at Fortress Gold Group, we feel this is an excellent time to invest in physical gold. The yellow metal thrives in times like this – times of political uncertainty when investors dash to a safe haven. Once Trump is inaugurated and launches even one of his controversial programs, the chances are market volatility will continue – in stocks and commodities in general, and in gold in particular.
 
Although stocks have quieted down, they stand to become more volatile very soon. Your retirement funds could be at risk. Why not diversify your portfolio with a solid investment in a tangible asset?
 
For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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