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Waiting to Buy Gold After the Election?

Jun 27, 2023

I'm Philip Diehl, president of U.S. Money Reserve. Sometimes I hear people say they want to wait until after the next election before deciding to buy precious metals, gold in particular. For whatever reason, they think the occupant of the White House makes a difference in how gold prices perform. I've been following gold since becoming U.S. Mint Director 30 years ago, and my observation is that election results are not a reliable predictor of future gold prices.

My opinion was reinforced as I looked back over the 1980s, when gold prices fell after Ronald Reagan's first election, then rose following his reelection. Gold seems to have the good sense to ignore partisan politics. The financial industry's research has found that gold prices are driven by macroeconomic and geopolitical forces, not U.S. politics. This means that today we should be giving more attention to what's happening at the Federal Reserve, what's occurring in commercial real estate markets and at vulnerable regional banks, and less attention to the sideshow that U.S. elections have become here.

Here at U.S. Money Reserve, we don't look at the next election. We urge our clients to take a longer view and to think of gold as a form of wealth insurance. Yes, wealth insurance. When do you buy insurance on a car? When you're preparing to go on a hazardous road trip or when you buy the car? When do you purchase insurance on a new home? When you sign the contract or when a hurricane is on the horizon? When should you buy gold? When you start building wealth or when you think an election result might pose a financial risk?

These questions all answered themselves. The prudent individual buys insurance before potential trouble arrives at their doorstep, and sometimes, if they wait too long, insurance isn't available or it isn't affordable. You'll find many resources on this website that explore the idea of gold as wealth insurance. I hope you'll pursue those resources here or with one of our team members. Thank you.

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