As the race for the United States presidential election gets hotter, the price of gold has been going up, and with it the stock market is reacting. It's no secret that as the political campaign heats up, there is a heightened chance that the outcome will be a win for one of the candidates, or a loss for the other.
This means there is a high likelihood that investors will sell off their gold. This could result in a bear market in gold, which would have far-reaching implications for the economy.
What are the implications for gold prices? Well, we've already seen how gold tends to be more resilient to economic shifts than stocks, and that means the effects on the market will be more immediate and severe. Here are some things to think about as you consider the implications for gold prices.
One of the most significant effects is likely to come from the major news events. If you're like me, you may already know that there is going to be an election coming up in November. The most important thing to remember about these news stories is that they usually come during a time when gold prices are rising. So the effects on the market may be more profound than what you think.
What about those less popular candidates running for office? Are they going to hurt or help the economy? Well, we haven't heard much about those yet, but the short answer is that if you have money tied up in gold, you're going to need to take a close look at your portfolio and decide whether or not it's worth it. And even if you don't own a lot of gold right now, you should seriously consider what could happen next week.
There are some things that are not likely to change the current state of the gold prices. In fact, it might make things worse, but there is no reason to think that these things are going to take place. So it makes sense to sit tight and ride out whatever happens, while the price goes up a little bit and then goes down a bit before coming back up.
Of course, the candidates themselves are not likely to do anything to affect the price. After all, they're hoping to win, so they will be focused on the issues that are really important to them. and not on things that will impact their potential win chances. But the markets may take notice that some of the candidates aren't focusing as much on the economy and financial matters as they should be.
They are also going to take note of who is leading in the polls, since these things will play a big influence on the general election. So it's possible that if one candidate starts out with a lead in the polls that the other will start to fall off right along side of him or her.
Of course, if the news reports on this Presidential Election Timeline and Implications For Gold Prices happen to be accurate, the price could go up. I mean, who knows? I'm sure that everyone would be watching carefully to see which candidate would get the edge over the others in the race and take advantage of the situation.
However, it's still highly unlikely that any of the current candidates are going to change the way they are acting. on the campaign trail.
Even though some of the news reports have mentioned some interesting plans that the candidates may have, most of them sound more like talking points than anything else. So it will probably be business as usual in the political arena until the election is over.
So, if you have money tied up in gold and expect some major events to take place in the upcoming months, then you should take the advice of your financial advisor and invest some of that money in gold in order to hedge your bets. While we can't be sure, it's at least a good bet.