What to Expect from Gold Prices If Romney Wins Election 2012
With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices . Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark - or higher. On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. They wrote in a research note via Commodity Online , "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time." Yesterday (Wednesday), December gold futures closed at $1,719.10. But if we fast-forward to January, even March 2013, if Romney wins Election 2012 , would gold prices be able to continue their upward run? Here's what a Romney win would do for the yellow metal.
With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices.
Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark - or higher.
On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks.
They wrote in a research note via Commodity Online, "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time."
Yesterday (Wednesday), December gold futures closed at $1,719.10.
But if we fast-forward to January, even March 2013, if Romney wins Election 2012, would gold prices be able to continue their upward run?
Here's what a Romney win would do for the yellow metal.
Why a Romney Win Supports
Gold Prices One thing Romney could implement is a gold standard commission, which he's been talking about in his platform.
This would have gold prices rising with the return of a connection between the U.S. dollar and gold. It is a little farfetched, but investors would jump on the precious metal as a safe investment and push prices higher.
There's also the potential change at the U.S. Federal Reserve. One area that Romney has been consistent on is his promise to replace Federal Reserve Chief Ben Bernanke. His term is not up until January 2014 and Romney could hand him walking papers if Bernanke doesn't leave on his own accord.
The Fed chief doesn't support a gold standard return, but in his absence, this idea could move forward.
Then there's that little U.S. debt problem Romney would face as president.
The nominee has said he has a plan to drastically cut spending, but once he gets into the office he will most likely realize this is a daunting task.
Cutting down the debt will have a negative effect on gold prices, but the likelihood of the U.S. doing so is slim, and would take decades. Realistically, the debt could continue rising under Romney at the helm, giving gold an even greater boost.
Also of note: Romney himself likes gold, reported ETF Daily News. The nominee marked on disclosures that he holds $250,000 to $500,000 in the yellow metal. Those would rise if he supported policies that led to higher gold prices.
RELATED: Here are the best ways to cash in on gold’s rise. body #pp-popup-5092b0b297c1b div,body #pp-popup-5092b0b297c1b dl,body #pp-popup-5092b0b297c1b dt,body #pp-popup-5092b0b297c1b dd,body #pp-popup-5092b0b297c1b ul,body #pp-popup-5092b0b297c1b ol,body #pp-popup-5092b0b297c1b li,body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6,body #pp-popup-5092b0b297c1b pre,body #pp-popup-5092b0b297c1b code,body #pp-popup-5092b0b297c1b form,body #pp-popup-5092b0b297c1b fieldset,body #pp-popup-5092b0b297c1b legend,body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b p,body #pp-popup-5092b0b297c1b blockquote,body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b td{margin:0;padding:0;line-height:normal;}body #pp-popup-5092b0b297c1b table{border-collapse:collapse;border-spacing:0;}body #pp-popup-5092b0b297c1b fieldset,body #pp-popup-5092b0b297c1b img{border:0;}body #pp-popup-5092b0b297c1b address,body #pp-popup-5092b0b297c1b caption,body #pp-popup-5092b0b297c1b cite,body #pp-popup-5092b0b297c1b code,body #pp-popup-5092b0b297c1b dfn,body #pp-popup-5092b0b297c1b em,body #pp-popup-5092b0b297c1b strong,body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b var{font-style:normal;font-weight:normal;}body #pp-popup-5092b0b297c1b li{list-style:none;}body #pp-popup-5092b0b297c1b caption,body #pp-popup-5092b0b297c1b th{text-align:left;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6{font-size:100%;font-weight:normal;}body #pp-popup-5092b0b297c1b q:before,body #pp-popup-5092b0b297c1b q:after{content:'';}body #pp-popup-5092b0b297c1b abbr,body #pp-popup-5092b0b297c1b acronym{border:0;font-variant:normal;}body #pp-popup-5092b0b297c1b sup{vertical-align:text-top;}body #pp-popup-5092b0b297c1b sub{vertical-align:text-bottom;}body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b select{*font-size:100%;}body #pp-popup-5092b0b297c1b legend{color:#000;}body #pp-popup-5092b0b297c1b del,body #pp-popup-5092b0b297c1b ins{text-decoration:none;} body #pp-popup-5092b0b297c1b h1{font-size:138.5%;}body #pp-popup-5092b0b297c1b h2{font-size:123.1%;}body #pp-popup-5092b0b297c1b h3{font-size:108%;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3{margin:1em 0;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6,body #pp-popup-5092b0b297c1b strong{font-weight:bold;}body #pp-popup-5092b0b297c1b abbr,body #pp-popup-5092b0b297c1b acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-5092b0b297c1b em{font-style:italic;}body #pp-popup-5092b0b297c1b del{text-decoration:line-through;}body #pp-popup-5092b0b297c1b blockquote,body #pp-popup-5092b0b297c1b ul,ol,body #pp-popup-5092b0b297c1b dl{margin:1em;}body #pp-popup-5092b0b297c1b ol,body #pp-popup-5092b0b297c1b ul,dl{margin-left:2em;}body #pp-popup-5092b0b297c1b ol li{list-style:decimal outside;}body #pp-popup-5092b0b297c1b ul li{list-style:disc outside;}body #pp-popup-5092b0b297c1b dl dd{margin-left:1em;}body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b td{border:1px solid #000;padding:.5em;}body #pp-popup-5092b0b297c1b th{font-weight:bold;text-align:center;}body #pp-popup-5092b0b297c1b caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-5092b0b297c1b fieldset,table,body #pp-popup-5092b0b297c1b pre{margin-bottom:1em;}body #pp-popup-5092b0b297c1b input[type=text],body #pp-popup-5092b0b297c1b input[type=password],body #pp-popup-5092b0b297c1b textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-5092b0b297c1b').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"5092b0b297c1b"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-5092b0b297c1b\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
But what happens to gold prices after the election may not matter which political party wins on Nov. 6.
History has shown that gold prices fall when a U.S. president has increased economic stability, cut armed conflict, and avoided scandal, reported the International Business Times.
When Americans are either nervous or unhappy with their president, his approval ratings fall and money goes to gold. This happened under President Nixon and Carter tenures. Gold prices rose 267% and 322%, respectively.
We'll discover how America feels about the next U.S. president when votes are cast in five days.
Gold prices in New York today (Thursday) were trading just below $1,718 an ounce.
Related Articles and News:
Tags: 2012 election, Election 2012, election 2012 predictions, Gold Prices, gold prices if Romney wins, gold prices Romney, gold stocks, If Romney wins election, investing in gold, presidential candidates 2012, price of gold, Romney wins election
On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks.
They wrote in a research note via Commodity Online, "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time."
Yesterday (Wednesday), December gold futures closed at $1,719.10.
But if we fast-forward to January, even March 2013, if Romney wins Election 2012, would gold prices be able to continue their upward run?
Here's what a Romney win would do for the yellow metal.
Why a Romney Win Supports
Gold Prices One thing Romney could implement is a gold standard commission, which he's been talking about in his platform.
This would have gold prices rising with the return of a connection between the U.S. dollar and gold. It is a little farfetched, but investors would jump on the precious metal as a safe investment and push prices higher.
There's also the potential change at the U.S. Federal Reserve. One area that Romney has been consistent on is his promise to replace Federal Reserve Chief Ben Bernanke. His term is not up until January 2014 and Romney could hand him walking papers if Bernanke doesn't leave on his own accord.
The Fed chief doesn't support a gold standard return, but in his absence, this idea could move forward.
Then there's that little U.S. debt problem Romney would face as president.
The nominee has said he has a plan to drastically cut spending, but once he gets into the office he will most likely realize this is a daunting task.
Cutting down the debt will have a negative effect on gold prices, but the likelihood of the U.S. doing so is slim, and would take decades. Realistically, the debt could continue rising under Romney at the helm, giving gold an even greater boost.
Also of note: Romney himself likes gold, reported ETF Daily News. The nominee marked on disclosures that he holds $250,000 to $500,000 in the yellow metal. Those would rise if he supported policies that led to higher gold prices.
RELATED: Here are the best ways to cash in on gold’s rise. body #pp-popup-5092b0b297c1b div,body #pp-popup-5092b0b297c1b dl,body #pp-popup-5092b0b297c1b dt,body #pp-popup-5092b0b297c1b dd,body #pp-popup-5092b0b297c1b ul,body #pp-popup-5092b0b297c1b ol,body #pp-popup-5092b0b297c1b li,body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6,body #pp-popup-5092b0b297c1b pre,body #pp-popup-5092b0b297c1b code,body #pp-popup-5092b0b297c1b form,body #pp-popup-5092b0b297c1b fieldset,body #pp-popup-5092b0b297c1b legend,body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b p,body #pp-popup-5092b0b297c1b blockquote,body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b td{margin:0;padding:0;line-height:normal;}body #pp-popup-5092b0b297c1b table{border-collapse:collapse;border-spacing:0;}body #pp-popup-5092b0b297c1b fieldset,body #pp-popup-5092b0b297c1b img{border:0;}body #pp-popup-5092b0b297c1b address,body #pp-popup-5092b0b297c1b caption,body #pp-popup-5092b0b297c1b cite,body #pp-popup-5092b0b297c1b code,body #pp-popup-5092b0b297c1b dfn,body #pp-popup-5092b0b297c1b em,body #pp-popup-5092b0b297c1b strong,body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b var{font-style:normal;font-weight:normal;}body #pp-popup-5092b0b297c1b li{list-style:none;}body #pp-popup-5092b0b297c1b caption,body #pp-popup-5092b0b297c1b th{text-align:left;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6{font-size:100%;font-weight:normal;}body #pp-popup-5092b0b297c1b q:before,body #pp-popup-5092b0b297c1b q:after{content:'';}body #pp-popup-5092b0b297c1b abbr,body #pp-popup-5092b0b297c1b acronym{border:0;font-variant:normal;}body #pp-popup-5092b0b297c1b sup{vertical-align:text-top;}body #pp-popup-5092b0b297c1b sub{vertical-align:text-bottom;}body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-5092b0b297c1b input,body #pp-popup-5092b0b297c1b textarea,body #pp-popup-5092b0b297c1b select{*font-size:100%;}body #pp-popup-5092b0b297c1b legend{color:#000;}body #pp-popup-5092b0b297c1b del,body #pp-popup-5092b0b297c1b ins{text-decoration:none;} body #pp-popup-5092b0b297c1b h1{font-size:138.5%;}body #pp-popup-5092b0b297c1b h2{font-size:123.1%;}body #pp-popup-5092b0b297c1b h3{font-size:108%;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3{margin:1em 0;}body #pp-popup-5092b0b297c1b h1,body #pp-popup-5092b0b297c1b h2,body #pp-popup-5092b0b297c1b h3,body #pp-popup-5092b0b297c1b h4,body #pp-popup-5092b0b297c1b h5,body #pp-popup-5092b0b297c1b h6,body #pp-popup-5092b0b297c1b strong{font-weight:bold;}body #pp-popup-5092b0b297c1b abbr,body #pp-popup-5092b0b297c1b acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-5092b0b297c1b em{font-style:italic;}body #pp-popup-5092b0b297c1b del{text-decoration:line-through;}body #pp-popup-5092b0b297c1b blockquote,body #pp-popup-5092b0b297c1b ul,ol,body #pp-popup-5092b0b297c1b dl{margin:1em;}body #pp-popup-5092b0b297c1b ol,body #pp-popup-5092b0b297c1b ul,dl{margin-left:2em;}body #pp-popup-5092b0b297c1b ol li{list-style:decimal outside;}body #pp-popup-5092b0b297c1b ul li{list-style:disc outside;}body #pp-popup-5092b0b297c1b dl dd{margin-left:1em;}body #pp-popup-5092b0b297c1b th,body #pp-popup-5092b0b297c1b td{border:1px solid #000;padding:.5em;}body #pp-popup-5092b0b297c1b th{font-weight:bold;text-align:center;}body #pp-popup-5092b0b297c1b caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-5092b0b297c1b fieldset,table,body #pp-popup-5092b0b297c1b pre{margin-bottom:1em;}body #pp-popup-5092b0b297c1b input[type=text],body #pp-popup-5092b0b297c1b input[type=password],body #pp-popup-5092b0b297c1b textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-5092b0b297c1b').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"5092b0b297c1b"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-5092b0b297c1b\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
But what happens to gold prices after the election may not matter which political party wins on Nov. 6.
History has shown that gold prices fall when a U.S. president has increased economic stability, cut armed conflict, and avoided scandal, reported the International Business Times.
When Americans are either nervous or unhappy with their president, his approval ratings fall and money goes to gold. This happened under President Nixon and Carter tenures. Gold prices rose 267% and 322%, respectively.
We'll discover how America feels about the next U.S. president when votes are cast in five days.
Gold prices in New York today (Thursday) were trading just below $1,718 an ounce.
Related Articles and News:
- Money Morning:
India's Demand for Gold to Boost Prices Before Festival Season - Money Morning:
Dip in Gold Prices Nothing to Fear; Long-Term Outlook Bullish - ETF Daily News:
What Will A President Mitt Romney Mean For Gold Prices? - International Business Times:
Gold Prices and Romney vs. Obama - Reuters:
Gold up along with stocks; eyes on Fed meeting - Commodity Online:
Deutsche Bank still bullish on Gold; raises 2013 Gold, Silver forecasts - CNBC:
Wall Street Gaming Romney Win: 'Trillions at Stake'
Tags: 2012 election, Election 2012, election 2012 predictions, Gold Prices, gold prices if Romney wins, gold prices Romney, gold stocks, If Romney wins election, investing in gold, presidential candidates 2012, price of gold, Romney wins election