A Golden Election

June 20, 2018

A Golden Election

What does the upcoming US Presidential Election mean for precious metals? Every so often we look at the mounting US National Debt, the volatility of stock markets, and the polarized approaches to long-term planning, and we ask: what does the near future hold for us regular people?

We don't claim to know what will happen to gold, silver, platinum, or any other metals you might want to buy after November 8th. But we would recommend you do some reflecting on the past decade. A decade where we nearly saw congressional partisanship fall to such lows that it risked the US treasury not being able to pay some of it's debt, even temporarily.

Today we stand with not only a divided House, but with divided economic, political, and social sympathies. Most people support neither large corporations nor large government institutions. Evidence even suggests that most legitimate efforts on either part to improve sustainability are increasingly cynically regarded.

Historically, markets have not been predictable for long. With that in mind, there has been a traditional correlation between economic panic and gold and silver prices. The apocalypse may not be coming, but is fear? Both candidates have expressed military support, and both have played on the tragic consequences of the other's victory. One challenging point is that just about all promises made will likely increase national debt. Does this mean another crisis is coming?

It would be far more complex than a short article could hope to note, but it would be ignorant to pretend the Great Recession was not almost a Depression. But for extreme work on the part of the US Government, and likely much luck, the US economy may have ended up similar to Japan's in the late 20th century. On the one hand, therefore, the western world managed to preserve trust following the temporary bust. On the other, we have been making terrific withdrawals against that very public trust since.

How is it that despite our supposed success, interest rates have remained at outstanding lows? Perhaps what appears to be a healthy economy is recognized, up top, as fundamentally flawed. Perhaps because the motto of more consumer spending has hit a balance sheet limit where more credit card debt is not going to help. What growth the developed world has seen must also be considered relative rising national and consumer debt levels.

A wise investor tends not to bank on economic collapse, but finds a way to protect him or herself against a worst-case scenario. Global Bullion Suppliers is neither investor nor investment advisor. We're not here to tell you how or what to think, but we are here to help give you some things to think about. Regardless who wins, some market response is likely.

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