Historically, U.S. presidential elections have a substantial impact on gold prices. After all, a change in leadership can bring a change in fiscal policy.
So, how do you trade it heading into elections?
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Invest in gold in the months leading up to the election. “Charts dating back to the 1970’s, reflect trends of gold prices soaring in the month of September before election day and a significant drop in the final days leading up to the event. On average gold prices continue to decrease until January of the following year,” says BellevueRareCoins.com. For our purposes, if we go back to the presidential elections of 2004 through 2020, we can see that in the months leading up to the election, gold prices push higher on election uncertainty. Prior to the 2004 presidential election (Bush v. Gore), gold ran from $421.50 in January to a high of $435 heading into the election. We then saw a post-election dip to about $413 in February before it ran to a high of $540 by December 2005. Prior to the 2008 presidential election (Obama v. McCain), gold ran from about $860 to a high of $936 in October. It then collapsed to a low of $708.30 thanks to the subprime fiasco. Following that dip, gold would eventually rally back to a high of $1,185 by November 2009. Prior to the 2012 election (Obama v. Romney), gold rallied from a January low of $1,556.80 to a high of $1,733 by the time of the election. Following that election, gold collapsed to a low of $1,395 by April 2013. Prior to the 2016 election (Trump v. Clinton), gold rallied from a January low of $1,061 to a high of $1,308 by the election. Gold then plummeted post-election to a low of about $1,125 before recovering to $1,309.30 by December. Prior to the 2020 election (Trump v. Biden), gold jumped from a January low of about $1,519.70 to a $1,912.20 by November. Post-election, gold dipped to about $1,776.50 to a high of $1,962.50 by December. |
Manward Press
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I bet you’ve never heard of it… but this newly public company is set to become key to Nvidia’s seat on the AI throne. And for now… you can get in while it’s still cheap.
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Invest in gold on any pullbacks between election day and Inauguration. “Since 1980, in the two-week periods following a presidential election, Democratic victories saw an average gold price increase of 0.5% while that same period for Republican victories produced an average price drop of 1.1%, according to the U.S. Money Reserve study,” according to Deseret News. “The impact is even greater during the period between Election Day and Inauguration Day. Democratic presidential election wins led to an average gold price increase of 1.5%, while Republican wins brought a 5.5% decrease on average.” |
Weiss Ratings
Modern Nostradamus Warns of Financial Disaster Pre-Election
Dr. Martin Weiss, who has predicted past financial crises with deadly accuracy, now warns of a major catastrophe that could begin before the next election. Millions could lose their savings, their investments, their financial freedom. But just taking three vital steps now can safeguard your future.
Watch Dr. Weiss’s urgent video to discover how to shield yourself from the impending crisis!
