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Dear Fellow Investor,
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?
One, 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.”
If we go back to the last Republican win with President Trump, we can see that between election day and Inauguration day, gold fell from about $1,309 to a low of $1,125. However, in the months that followed, gold rallied back to a high of $1,362.
Prior to that victory, Republican President George Bush Jr. had a positive impact on gold prices. In fact, gold ran from about $377 to $428 ahead of the Inauguration. Then, following a brief pullback to $390, it ran back to about $440.
Paradigm Press
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Two, invest in gold no matter who wins the election.
It really doesn’t matter who wins the election, as once pointed out by HSBC analysts.
"In addition to economic and financial events, gold is sensitive to geopolitical and even social developments," they said, as quoted by Markets Insider.
"This US election may be particularly important in setting the course of US economic policy and foreign policy and hence for gold prices, given the severity of the challenges facing the economy (including still-sluggish economic growth, income inequality, high debt levels and low productivity) and foreign policy entanglements and challenges."
That being said, there are a few ways to invest in gold.
Stansberry Research
Strange new catalyst for gold ($5,000 possible?)
Many are wondering why so many countries are frantically buying gold right now. The truth is this is just the beginning of a much larger story. One that could send gold soaring to even bigger highs in the coming months. But the best way to cash in on gold’s upside might surprise you.
One firm says this $6 stock could be the best way to get started.
For one, we can use exchange-traded funds (ETF), such as:
ETF: VanEck Vectors Gold Miners ETF (SYM: GDX)
One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (SYM: GDX). Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost.
With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.
Even better, shares of mining stocks often outperform the price of gold. That’s because higher gold prices can result in increased profit margins and free cash flow for gold miners. In addition, top gold miners often have limited exposure to riskier mining projects.
Or, look at gold mining stocks.
Company: Newmont (SYM: NEM)
Yielding 1.73%, 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.
Marketbeat
Is your portfolio ready for a November Surprise?
As this shocking Trump vs. Harris election heats up, things are getting ugly.
And all signs point to another nasty election cycle that looks too close to call.
If there’s one thing that Wall Street hates, it’s uncertainty. Just look at the major market swings we;ve seen lately! That's why I urget you to prepare your portfolio now for what lies ahead.
Just click here now to get your free copy of “7 Stocks to Own Before the 2024 Election.”
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