EDITOR NOTE: We said a while back, before the election, that regardless of a Biden or Trump win, precious metals would soar; and that a Biden win might even provide an extra boost to silver, considering its industrial use in the alternative energy subsector. But we didn’t provide historical context for that statement; and note that the context can be distracting since the government and the Fed are two institutions with distinct operations and effects that happen to get lumped into a parallel view. Well, this article shows you what happened to gold the last time the Democrats took over. See it for yourself, as it’s likely the current administration will bring about an outcome that far exceeds what Dems have done before. What it means: position your portfolio accordingly, as your wealth--actual or potential--is at stake.
There was a brief round of buying yesterday at the height of the Capital Hill riot but that fizzled. There was also some modest selling at the start of New York trade that never got anywhere.
I think the backdrop for gold is unambiguously good for gold now with deficit spending set to surge in the US and just about everywhere else.
With Democrats taking control of the Senate, here's a reminder of how gold did last time the Dems controlled the House, Senate and White House, which they held through 2010 when they lose the House.
Originally posted on ForexLive
