On the cusp of an ever-polarizing election, within days we will know who the new President is… or will we? How will the outcome effect the Gold price? Or Stock prices? No one knows.
When everyone on Wall Street builds a “consensus” of what will happen after recent elections, they’ve been wrong. They forecast Trump would be a disaster for Stocks if elected. Only a few hours after the Presidential winner was decided in 2016, the U.S. Stock Market too off— up, up, up.
When Wall Street analysts and the fake media get riled up, they typically believe their own non-sense— until America voters cast their votes. Then the media is shocked and embarrassed, but never humbled.
Worse Than Hanging Chads
We expect Gold to drift around till Election Day. Then…we fully expect there to be election chaos to rival the George Bush 2000 “hanging chad” fiasco. If you recall, one vote in the Supreme Court decided the outcome.
This time will be different though. If this election is undecided, there will be national rioting and a Civil War feeling spread through the media and those on the losing side of this election. It could get very ugly.
Stocks Hate Uncertainty— Gold Loves It
This time, the election disturbances will greatly impact both the Stock Markets and Gold. Anything could happen after November 3rd. Expect it. Plan for it.
Once we are into election chaos and extended uncertainty, we could see Gold pop $100 to $200 quickly. The longer the election problems go on, the more likely Gold will rise more than 10%.
At some point the Presidential winner will be decided. After the short term rise, we will likely consolidate a little lower. We hope that is above the 2020 high so far this year.
Stimulus Great for Gold
Regardless of who is elected, it appears the next major stimulus package of $2 Trillion Dollars will be the guaranteed, long-term catalyst driving up gold prices. The Federal Reserve seems quite dedicated to produce inflation and destroy the U.S. Dollar if it has to.
We have no crystal ball to guarantee this outcome. It’s more just a gut feeling on how things might go short-term. However, when you put the pandemic phase two coming, high unemployment, a recessionary environment, financial volatility, the massive expansion of U.S. debt, a weakening Dollar all together— well, it’s hard to see that Gold will have downside risks in coming months.
More likely, in our opinion, the upside potential for Gold won’t get any better than this. Only time will tell. Don’t squander this once-in-a-generation opportunity to profit from Gold and avoid loses in Stocks.