If you’re a gold investor, you should be generally pleased with the outcome of the U.S. election — however it may ultimately turn out.

November 4, 2020

Dear Fellow Investor,

We won’t know for days who won yesterday’s presidential election. But we do know one group that’s a clear winner: gold investors.

There’s a great chance, even likelihood as I write, that Joe Biden will win the White House.

But it seems even more likely that the Republicans will retain control of the Senate. And that means that the Democrats’ plans for tax hikes, court-packing and the more-extreme proposals of their liberal base will be dead on arrival.

True, we won’t get any further roll-back of the administrative state or any of the free-market policies that some of Trump’s advisors had been working to advance, but this might be interpreted as the best, or at least second-best, of the possible outcomes.

In fact, noted analyst Jim Bianco predicted during our New Orleans 2020 conference that a dead-locked U.S. government was the ideal outcome for the financial markets.

The markets seem to be treating it that way today. The U.S. stock market, for example, is roaring higher as I write.

Gold’s down about ten dollars at this moment, but I wouldn’t read much into it as the market’s been generally steady through all the election chaos so far.

Speculators had bought gold in recent days on the prospects for a blue wave that would have put both the White House and Congress in the control of the Democrats, and therefore grease the skids for more-massive stimulus spending. The exit of those traders on the likelihood of a divided government, with Biden in the White House but Republican control of the Senate, is behind what weakness we’re seeing in gold so far.

However, we’re still going to get a hefty stimulus package regardless of the outcome, and the divided government will put a stop to Biden’s tax hike plans and the more extreme policy measures of his constituency, so the result could be considered the best of all worlds by many market participants.

A resolution of the political outcome and some insights into the future for stimulus spending are what gold is waiting for to resume its upward trend. I expect we’ll begin to see these factors come into play by next week.

On Friday, I’ll be on a private Zoom call with Peter Boockvar, Adrian Day, Byron King and Albert Lu, discussing the repercussions of these election results.

I’m going to press “record” on that call and members of our New Orleans Investment Conference Club will get access to that recording.

If you’re a member, look for an email tomorrow announcing the details.

If you’re not yet a member and want access to this and future virtual events, as well as the complete recordings of our recent 2020 New Orleans Investment Conference, CLICK HERE.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference

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