The gold market is one that is thoroughly studied at all times to provide consumers with the best buying information possible. The goal of these studies is to not only create educated decisions about buying gold but also to understand the cause and effect of various influences. One such power that plays a significant role of the in ups and downs of the market itself is an election year.
A key focus of study over the last several decades, election years have shown to be of significant influence. Charts dating back to the 1970’s, reflect trends of gold prices soaring in the month of September before election day and a significant drop in the final days leading up to the event. On average gold prices continue to decrease until January of the following year.
However, during non-election years, gold tends to command a higher value 9 out of 12 months. This finding alone suggests that gold prices are affected by the assumed instability of the country’s political and economic future during the year in which a new president is named.
When reflecting on this past week, gold prices have in actuality hit an all-time high, selling for $1300 per ounce. Certainly, the gold market has been impacted in a positive manner due to a fragile dollar and the current election being just around the corner, contrasting trends of prior election years.
As the 2016 election comes to a close on Tuesday, attention will be focused on the outcome of a long campaign and the impact the results will have on the gold market. Experts maintain that regardless of who wins the 2016 Presidential election, gold investors will reap a handsome return on their investment into the precious metal. Their estimates are hopeful that gold will reach anywhere between $1400-$1500 per ounce once the market stabilizes after the election outcome.
For any that have been toying with the idea of investing in gold, now may be as good a time as any.
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