The 2016 Presidential election has been one for the ages, and the excitement is far from over. Heading into the final days before Americans will vote for their next President, many polls have the candidates running neck and neck, with Donald Trump now ahead in at least one poll.
Things could get a little dicey from here on out…
A Trump victory could potentially have a significant impact on global financial markets, and volatility could increase in dramatic fashion.
With a Trump Presidency could come many unknowns, and investors (like regular human beings), have a strong fear of the unknown. In a recent article on Marketwatch.com, Julian Jessop, head of commodities research at Capital Economics was quoted as saying “Whatever one’s personal views of the relative merits of Donald Trump and Hillary Clinton as president of the U.S., there can be little doubt that global business and investor confidence would suffer in the wake of a Trump win.” A Hillary Clinton win that is disputed could have a similar effect on financial markets.
Risk assets could potentially come under major fire, with industrial commodities, emerging-market currencies and stocks possibly getting clobbered.
One commodity that may not only avoid a clobbering but could potentially thrive in such a scenario is gold.
This type of market action was seen back in June following the historic Brexit referendum, as several key commodities like copper and oil got hammered while gold exploded higher.
The bottom line: People trust gold.
If a Trump victory does in fact take place, his actions when he takes office could potentially cause even more investor anxiety, while his actions could also soothe global markets.
That being said, the time between a Trump victory and being sworn in could be very trying for investors, and there is no telling exactly how markets might behave. Investors could potentially seek out perceived safe haven assets such as physical gold, silver and other precious metals.
This would not be the first time that gold has seen massive buying on economic and geopolitical uncertainty, and we don’t believe it will be the last.
The powers of fear and greed tell us that gold will always have a place within a well-balanced portfolio, and if you do not already include physical precious metals as part of your overall holdings, you may want to reconsider.
Gold not only provides the potential for significant price appreciation, but may also potentially provide a meaningful hedge against a weaker dollar, inflation and other economic or geopolitical issues.
Some interesting times could be ahead with the transfer of power, and significant changes could potentially be seen in many areas of U.S. economic and geopolitical policy.
If you don’t own gold already, now is the time to act. Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Buying and holding this key precious metal has never been easier, and we can even show you how to build a physical gold portfolio using your IRA account.
If you are looking for some peace of mind and potential stability in your portfolio in a very uncertain world, put your trust in physical gold. Call us today at 1-800-341-8584 to get started.Tags: advantage gold, gold, hillary, investor confidence, market uncertainty, polls, president, presidential election, trump, volatility, vote