Buy This Ahead of the U.S. Presidential Election – 7/8

In election years, buy gold.

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.

Then, once the election is over, we’ll typically see a post-election pullback in gold, which offers us a second opportunity to go long gold.

For example:

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 in large part 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. Gore), 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.

Based on those historical trends, we believe gold could repeat that election year success.