With piles of political attack ads and bickering stretching from the debate podiums to our own neighborhoods and social media pages, it’s hard to feel like anyone at all is really winning in this election. And with both sides pledging to contest the outcome if the results margins are narrow, it’s also hard to imagine that anyone will win anytime soon. Even still, we are confident that you can come out a winner after this election regardless of your political affiliation.
Last week we began to unpack how different election outcomes can affect the markets. We also said that gold and silver are poised to rise regardless of the election outcome. But is that really possible?
A “blue sweep” of the House, Senate and White House – which many polls are projecting – would most certainly result in at least $5 trillion in government spending and a substantial increase in taxes. Split results would likely still result in significant government spending without the tax increases and perhaps less contribution to the national deficit. While each outcome will uniquely affect our national economy and the global economy, the differences are rather minor when compared to the similarities – at least in the near term.
In effect, any possible outcome produces largely the same economic results within the next year or so: more government spending; more national debt; more debasement of the U.S. dollar; more uncertainty. And what historically responds positively to all of these things? Gold and silver.
Physical gold and silver are not known to be significantly influenced by elections, politics or world leaders so it’s no surprise that this election will likely have little effect on them. Instead they are much more closely tied to supply and demand, struggling markets, and overall uncertainty – three things that are all but guaranteed to hang around.
In fact, even apart from having these strong drivers in place, gold and silver both have reason to grow in leaps over the next year.
So, while there are still many reasons to “vote your future,” as many have said, rest assured that you don’t have to completely rely on your opportunity to “vote your future” financially. Regardless of whether your taxes will increase or the dollar inflates or deflates, you can still win this election by protecting and even growing your wealth with physical silver and gold despite nearly any outcome.
If you’d like more details about how gold and silver have performed this year and why they’re expected to continue their paths upwards, please contact us today. We have years of experience working with gold and silver as wealth insurance through a number of political and economic climates and are seeing many undeniable signs of its potential to perform as a star investment. With just 7 days until the election, this could prove to be the calm before the storm.