How Gold is Impacted by a New President

How Gold is Impacted by a New President
The 2016 presidential election was one of the most contentious and possibly the most unique contests in American history. Both sides had a candidate who represented a first: Clinton would have been the first woman elected president of the United States, and Trump became the first president elected without ever having held any prior public office or military service.
In addition, according to polls, Clinton and Trump were the two most unpopular major presidential candidates to oppose each other in history, and the election was won by a candidate who failed to win the popular vote by a large margin. Half of registered voters did not even turn out to vote at all.
So, what does President Trump’s victory mean for the price of gold? Speculation has been rampant. Some feel that an outsider with business experience will generate consumer confidence and all boats will rise. Others feel that having such a brash, inexperienced character at the helm will send people into a panic, which can be a good thing for gold prices, since people see gold as more stable and reliable than stocks and bonds.
What’s the truth of the matter? All we can do is look at previous trends.
Elections and the Gold Cycle
The first thing to note is that typically, gold gains just before the election – around September – and tends to fall a bit at the time of the election, only to go through another rise and fall going into the new year. The next thing to note is that typically, gold performs its worst in the first year of a presidential cycle, so even if gold starts down, it is likely to rise over the course of a presidency.
This Election and the Gold Cycle
What about Donald Trump? How is he likely to affect gold prices? It is interesting to note that the biggest jump in gold immediately following an election over the last half century was following the election of Jimmy Carter in 1976. Carter was also considered an outsider, much like Trump. For this reason, we might speculate that Trump’s election will precede a spike in gold prices.
Long-Term Effects of the Election on Gold
The way the presidential election affects gold prices will be reflected mostly in the monetary policy that follows, and how that policy affects the economy. These things too, are difficult to predict, especially for a layperson.
If you’re considering investing in gold, you would be wise to base your decision not on the outcome of a presidential election, but on the opinions of experts. Ed Moy, former director of the U.S. Mint who oversaw the largest production of gold and silver in the U.S., only trust his gold IRA with Fortress Gold Group. You can request his guide to Gold IRA investing for free.
Due to the stability of gold and its resistance to market forces, many people like the idea of banking on gold for their retirement. With a Gold IRA, you should expect to hold your gold and hope to watch its value grow over numerous election cycles, so your decision doesn’t have to be tied down to one particular election.
Fortress Gold Group provides many options for clients.
To find out more about a Gold IRA, contact Fortress Gold Group today at 800-777-6177 and speak to a precious metals specialist.

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