Month: November 2020

The 2020 presidential election has been a tumultuous one. With gold prices hovering between $1,900/oz. and $1,930/oz. in October, could prices go up once the election is decided in November? We examine elections dating back to the 1980s to see what we can learn about post-election gold prices.

Gold After Trump, Obama, Bush, Clinton, and More

Just as U.S. presidential campaigns can go up and down, so too can gold prices fluctuate after presidential elections.

In the months after Donald Trump defeated Hillary Clinton in 2016, gold fell, going from more than $1,300/oz. to the low $1,100s, MoneyWeek points out. But then, in Trump’s first year in office, gold rose by $200. The yellow metal began 2017 at $1,150/oz. and ended at $1,350/oz. Toward the end of Trump’s first term, gold surpassed a record high of $2,000/oz.

In the first year of Barack Obama’s first term, gold surged to record highs, according to MoneyWeek. However, gold then experienced four years of market stress.

Under George W. Bush, gold enjoyed eight years of a bull market, rising from below $300/oz. to more than $900/oz., according to MoneyWeek. Yet after Bush won a second term, gold saw a brief blip, retreating 10%.

Gold also retreated after Bill Clinton was elected to his first term. But in his first year in the White House, gold bounced back, MoneyWeek notes. His second term, though, produced all-time lows of around $250/oz.

In his only term, Clinton’s predecessor, George H. W. Bush, watched the price of gold go down, according to MoneyWeek. Before that, gold jumped during Ronald Reagan’s second term, although it sagged right after he was elected. But in Reagan’s first term, gold headed into a valley, plunging from more than $600/oz. to less than $300/oz., MoneyWeek reports.

According to TV station KOMO, gold prices usually increase in September ahead of a presidential election and decline in the days before Americans head to the polls in November. On average, gold prices continue to taper until the following January.

Here’s a different look at the performance of gold after three previous elections:

• After George W. Bush was reelected in 2004, the price of gold climbed about 7% in the month after he won and rose 4.8% overall that year.
• After Obama was elected in 2008, gold’s price climbed 17.8% by the end of the year.
• In the wake of Trump’s 2016 victory, the price of gold declined in November and December. In November 2016, the price dropped 7.6%; the next month, it fell by 1.8%. On the day after Trump won, the price of gold surged by almost 5%.

So what’s the upshot of all this?

“A close look at historical gold price movements in the aftermath of previous U.S. presidential elections suggests little evidence of a clear relationship between the gold price and the election outcome based on party affiliation,” according to data, analytics, and technology provider Refinitiv.

Refinitiv goes on to explain that gold “seems to have recorded better and worse years under the leadership of both parties—and even exhibited contrasting performance under the same administration during two successive terms.”

The company concludes that underlying macroeconomic conditions play a greater role in the movement of gold prices than do pure politics.

What Might Happen with Gold After the 2020 Election?

Refinitiv believes that the near-term outlook for gold after the 2020 presidential election indicates near-term price volatility no matter the outcome. However, Refinitiv also predicts that gold prices will set a new high before year’s end. In the midterm to long term, the environment for gold remains “highly favorable,” the company reports, as either Donald Trump or Joe Biden will be dealing with economic instability, low interest rates, and continuing tension between the U.S. and China.

According to Kitco News, some experts envision that gold’s price forecast could be further impacted by which party ends up controlling Congress and whether the presidential election results are contested.

Investment bank JPMorgan Chase & Co. foresees a 2 to 5% spike in gold prices if Biden and fellow Democrats lead a “blue wave,” Financial News reported. But if Biden wins and the Republicans retain the Senate, JPMorgan analysts predict a 2% rise in gold prices. Meanwhile, a Trump win could knock 5% off gold prices in the short term, but a contested outcome could boost gold prices by 2 to 5%.

Stay on top of gold prices after the election. Bookmark U.S. Money Reserve’s gold price chart page now and check out these gold price tracking resources.

The post A Historical Look at Gold Prices After U.S. Presidential Elections appeared first on U.S. Money Reserve.

New year. New coins designs. U.S. Mint unveils new look for 2021 American Eagle silver coin.

In early October of 2020, the U.S. Mint announced some big changes are coming for its best-seller: the American Eagle silver coin is getting a makeover in 2021. Never before in the 34 years since the American Eagle’s inception with the passage of the Liberty Coin Act has the design for the coin changed.

The change marks a once-in-a-generation opportunity to witness the history of American coinage in the making. And to add a piece of it to your personal collection.

Get the details about the new American Eagle design and release date below.

How Is the Silver Eagle Changing?

The design of the Silver Eagle is changing. Details about the redesign of the coin are still emerging. Here’s what we know so far:

New Reverse Design

The most significant changes to the American Eagle silver coin will be to its reverse or tails side.

It’s getting a complete makeover.

A sketch the U.S. Mint released reveals a much more dynamic image will replace American sculptor John Mercanti’s heraldic eagle: an eagle in the wild coming in for a landing.

In Mercanti’s version, the eagle clasps the symbols of war and peace—arrows and an olive branch—in its talons; a shield with stripes suggestive of the American flag covers its chest.

The new reverse portrays the eagle carrying an oak branch, possibly to place in its nest, which is not shown. Absent are the 13 stars representing the original colonies.

‘My inspiration for this design grew from a desire to show our national bird — with all of the values it embodies — in a unique way that could also convey traits such as diligence, cooperation, care, and protection,’ explained the designer of the new reverse Emily Damstra, who is a member of the Mint’s Artistic Infusion Program (AIP).^[1]

The inscriptions surrounding the eagle remain the same: “ONE DOLLAR,” “1 OZ FINE SILVER,” and “UNITED STATES OF AMERICA.” However, in the old reverse, “E PLURIBUS UNUM” was scrolled across a banner the eagle held in its mouth; in the new design, the national motto is engraved just interior to the coin’s weight and metal content.

2021 American Eagle Silver Coin Reverse Design

The reverse design of the new 2021 1 oz American Silver Eagle Coin colorized by SBC Gold.

New Obverse Design

Rather than an entirely new look, the U.S. Mint is giving the obverse design of the silver American Eagle a “refresh.”

That means Adolph A. Weinman’s glorious walking personification of Liberty is here to stay. You can read a full description of the image here.

We’ll update this article as the Mint releases more details, so check back soon.

New Security Features

The 2021 Silver Eagles will offer collectors greater security in the form of new anti-counterfeiting technology. Details to come…

2021 American Eagle Silver Coin Specifications

No mention was made of changes to the 2021 Silver Eagle’s coin specifications. However, we’ll know for sure once the Mint releases its official statement.

Why Is the Silver Eagle Changing?

‘These beautiful designs build on the United States Mint’s heritage of artistic excellence and fortify the American Eagle Coin Program’s status as an icon in the numismatic and art worlds,’ said Mint Director David J. Ryder.¹

What Is the 2021 Silver Eagle Release Date?

The newly designed 2021 Silver Eagle bullion and collector edition coins will be released in the summer of 2021.^[2]

Is 2020 the Last Year of the Silver Eagle?

Yes, 2020 is the last year for which the Silver Eagle will feature the original 1986 designs.

Add the Historic 2020 Silver Eagle to Your Collection—Before It’s Gone Forever

The 2020 Silver Eagle is the last of its kind. And a marker of this major turning point in the history of the country’s coinage.

Speak with a Scottsdale Bullion & Coin advisor today about adding one to your collection. Call 888-812-9892.

Yahoo! Finance: SI=F News

The experience of American elections has arguably become more stressful thanks to the proliferation of polls. If the only count that matters are the votes on election day, why do we spend so much time trying to figure it out ahead of time? The answer is because democracy matters (at least for now.) The importance of polls reflects the weight that America, home to the world’s most expensive election campaigns, puts on it voters, and media’s efforts to help the public keep up.

The post Polling is driving us mad, but the alternative would be much worse appeared first on WorldSilverNews.

Kitco News

(Kitco News) – Markets might not get clear results from the U.S. election on Tuesday, according to StoneX.

The post Gold price ahead of U.S. election: ‘We cannot be certain of a clear result on Wednesday’ – StoneX appeared first on WorldSilverNews.

Yahoo! Finance: SI=F News

(Bloomberg) — Gold climbed at the start of a crucial week that brings the U.S. presidential election and a Federal Reserve policy meeting — events set to dictate the trajectory of the dollar, the precious metal and appetite for risk.Bullion was up for a second session, with Democratic nominee Joe Biden’s chances of winning the Electoral College rising to a record high 90%, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model, although some state races are still extremely close.“The possibility of post-election turmoil and a contested outcome represents a significant risk in our view, and one that could prove quite gold-positive in the most extreme scenarios,” according to RBC Capital Markets.Gold has given up ground during the presidential race’s closing stages, dropping for a third straight month in October, the longest losing run for the traditional haven since April 2019. Still, while prices have pulled back from the record set in August, holdings in bullion-backed exchange-traded funds remain close to an all-time high as investors track the U.S. contest, the course of the coronavirus pandemic, and central bank action.Meanwhile, large swathes of Europe will enter lockdown this week as governments concluded tougher action is needed to counter the pandemic. Global fatalities topped 1.2 million, after the deadliest week for the outbreak since April.Global markets are priced at a pivot point, with real rates climbing as nominal rates rise and breakevens struggle to firm amid a second wave of the coronavirus, TD Securities analysts led by Bart Melek said in a note. Precious metals have broadly remained contained to their multi-month range for the time being, according to the analysts.“As uncertainty fades going forward, we expect a that investment demand will continue to grow in the months ahead, lifting gold prices as real rates resume their downward trajectory,” according to TD Securities.Spot gold advanced 0.7% to $1,892.46 an ounce at 2:01 p.m. New York time, extending Friday’s 0.6% gain. Gold for December delivery on the Comex rose 0.7% to settle at $1,892.50 an ounce.Spot silver climbed 1.1%, while platinum and palladium also rose. The Bloomberg Dollar Spot Index was 0.2% higher after rising 1.2% last week.The Federal Open Market Committee meets Nov. 4-5. The Fed won’t increase the pace of its asset purchases this year or next, and wouldn’t meaningfully boost the U.S. economy even if it did, according to most economists surveyed by Bloomberg ahead of this week’s gathering.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

The post Gold Rises on U.S. Election Eve With Turmoil Risk Fueling Demand appeared first on WorldSilverNews.

Yahoo! Finance: SI=F News

As Americans head to the polls to vote in a presidential election there are multiple scenarios for how the day might play out.

The post Some scenarios of what could happen on election day and beyond appeared first on WorldSilverNews.