In election years, buy gold.
If we go back through the last few presidential elections, 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 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, some of the top stocks to consider are:
Newmont (SYM: NEM)
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. Even better, its world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. It’s also the only gold producer listed in the S&P 500 Index.
And, according to CEO Tom Palmer, it’s a “once-in-a-generation buy for anyone who’s thinking of putting a few dollars into gold equity.”
Barrick Gold (SYM: GOLD)
Barrick Gold operates mines and projects in North and South America, Africa, Papua New Guinea and Saudi Arabia, its portfolio spans the world’s most prolific gold districts in the world. It also has plans to boost its mine output by about 30% by the end of the decade.
Helping, the company says its on schedule to meet production targets for 2024. “Despite lower production in Q1 due to planned maintenance and mining of lower grade ores, resulting in slightly higher costs, the company expects to increase production and reduce costs in the following quarters,” said TipRanks.com.
