What The Election Means for Gold
I’m reaching out to our clients on what I feel could be the most important situation facing us today. The current Presidential election has been nothing short of historic.
I believe it doesn’t make a difference who is elected - The end result will have a positive effect on the precious metals markets. However, for some time now, most have felt that a Clinton victory is a foregone conclusion. When assumptions like this happen, it can breed opportunity as well as create great risk. Our financial markets are run by humans with emotions that are based on information they get from many kinds of sources. Most of the sources have been saying Secretary Clinton will win the election running away.
I believe the financial markets have “priced in” a Clinton victory, which creates an opportunity for profit and, most of all, a need to protect your assets. If Mr. Trump were to pull off the upset and surprise the financial markets, it could have a very profound effect in several key areas. With the revelation that the FBI is reopening the investigation into Secretary Clinton’s use of a private email server, a Trump victory is now a real possibility. I believe, as many others do, that if Trump wins, Gold could move up to $1,400 to $1,500 per oz. in the very short term, maybe overnight. We witnessed a similar reaction when the European Union’s Brexit vote surprised everyone; Gold spot leaped up $100 in about an hour!
The biggest fear appears to be with the reaction of the stock market to a Trump victory. There are many economists that believe a Trump victory would cause an immediate knee jerk sell off in the market. Hillary Clinton is more of the status quo; thus, she is predictable. Trump is seen as unpredictable and, of course, the stock market is scared of things that are unpredictable. One thing is abundantly clear; we’re living in a very uncertain time. I highly recommend to all of our clients that you protect your assets within a diversified precious metals portfolio. I believe that regardless of the winner, owning precious metals could be the safest place for your hard earned money. What if the worst thing happens and Secretary Clinton is elected, then convicted, and removed from office? Or what if the election results are contested for a prolonged period of time? What would that do to our markets and economy? My father always said “I’d rather be safe than sorry”. Right now is one of those times. Don’t wait, call today and we will help you prepare for and protect your assets! Sincerely, Barry Jepson CEO International Precious Metals http://www.preciousmetals.com
About the Author
