Electoral Chaos Could Push Gold Higher

As the U.S. presidential election approaches, there is growing concern over when, or even whether, the election will determine who will lead the nation for the next four years, because President Trump has repeatedly questioned the legitimacy of the vote. 

Get in on gold before it goes higher.

The president has claimed, without proof, that there is “tremendous potential for voter fraud,” stated that “mail ballots, they cheat,” and argued he will only lose in November if there is a “rigged election.” Most ominously, he has refused to pledge to respect the election results and accede to a peaceful transfer of power. “We’re going to have to see what happens,” he said at a September 23 press conference. “There won’t be a transfer, frankly; they’ll be a continuation. The ballots are out of control.”

The president’s claims and threats raise the specter of a leadership crisis for the country that could send investors rushing to the ultimate financial safe haven — gold. 

“A lot can happen between now and the election, and I do believe gold can benefit from it,” said Kristina Hooper, chief global market strategist for Invesco Advisers.

Citigroup analysts have told clients that questions about the election may be “underappreciated by precious metals markets.” For that reason, the bank is forecasting gold will hit a new record by the end of the year.

President Trump has warned he will contest the election in the courts, warning, “this scam that the Democrats are pulling—it’s a scam—this scam will be before the United States Supreme Court.” Comments like those have gold bulls speaking of the potential for big gains in the coming weeks.

“Gold thrives on uncertainty: we’ve never had an election in my experience in the U.S. that is as uncertain as this, and as uncertain a political environment as this,” said George Milling-Stanley, chief gold strategist at State Street Global Advisors. 

Get in on gold before it goes higher.