Tag Archives: Prices

What Role (if any) will Having Elected an Incumbent Democrat Have on Short-Term Prices of Gold and Silver? PMBG Announces Expected Outcomes Coming out of the Gates of this Week’s Election

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(PRWEB) November 09, 2012

With the presidential election decided, the market responded ahead of, during and after Election Day itself. Gold is expected to continue its rise in 2013, reaching up to the $ 2,000 mark (conservatively) or likely higher (per most analysts projections). 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. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

Gold prices generally languish in a year leading up to a U.S. presidential election and silver prices tend to weaken as well. Bad economic news and geopolitical concerns spur investors to buy gold and silver. For one thing, the incumbent tries to keep the public focused on any positive economic news, and that isn’t good for gold, says Terry Hanlon, president of Dillon Gage Metals in Dallas, adding that If the past is any guide, this may be a good time to invest in precious metal coins like U.S. gold and American Silver Eagles or Canadian Maple Leafs, looking for them to rise in value…

In March 2008, gold reached more than $ 1,000 an ounce and then dropped to $ 740 in the election month of November that same year. But after that gold embarked on a steady advance. During President Barack Obama’s Administration, the price of gold in fact doubled. Since September 2011 though, gold retreated, heading into the recent November 6th election. It has lost more than $ 300 from last September’s peak of $ 1,900 an ounce. Now that the November election is over and the President has been chosen, the spotlight can be expected to shift back to the underlying bad news in the U.S. economy. These factors, along with the oscillating Eurozone Crisis and current Middle East tensions, are supportive for precious metals gains longer term. (http://www.econmatters.com/2012/10/gold-and-silver-range-bound-on-us.html)

A precious metals expert at HSBC took the historic Gold price data and tracked the price against the US presidents from the Vietnam War era to present. By overlaying Presidential job approval rating data from Gallup against Gold prices, he has determined that popularity and price are inversely correlated; meaning the less popular the President, the higher the Gold price. Whether it goes up or down post-election will not depend on a Democrat being elected or a Republican not being elected. Historical data shows that Gold will go down in price if a US President is able to increase economic stability, decrease armed conflict, and avoid scandal and up if those circumstances are reversed. (http://www.livetradingnews.com/gold-prices-and-romney-vs-obama-90086.htm#.UJTQTLHMhDs)

About Precious Metals Brokerage Groups International, LLC (“PMBG”):

PMBG is a leading U.S. based precious metals trading firm and a proud member of the Better Business Bureau with an A Rating. The company offers a full range of internationally recognized precious metals investment products including bullion bars and coins of gold, silver, palladium and platinum, as well as semi-numismatic and numismatic coins. The precious metals are delivered via FREE direct, insured shipment to your home or to a secure depository for storage for 401k, 403b, and self-directed IRA accounts (including Traditional and Roth IRAs). Interested investors can call PMBG directly at 1-800-516-PMBG (1-800-516-7624) or visit http://www.pmbg.net for a FREE investment kit or to learn more details on setting up Gold and/or Silver IRAs and other precious metals investment and retirement accounts.







Rare Coin Wholesalers Releases Gold Prices and Inflation Fears Article

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Irvine, CA (PRWEB) August 06, 2012

Rare Coin Wholesalers (RCW) announced the release of their latest article, Gold Prices and Inflation Fears. In the article, Dr. Scott Sumner, economist and writer for RCW, claims that the internet is full of commentators predicting high inflation, and they are using that argument to sell gold. He explains that since July 2008 inflation has averaged only about 1.2%, the lowest rate over any similar period since the mid-1950s.

The article describes how the fear of inflation is driven by two factors, large budget deficit and rapid increases in the money supply. Sumner presents research that suggests monetary policy has a much more powerful impact on demand and inflation rather than fiscal stimulus.

The article addresses how the current state of our economy is not likely to produce inflation. Inflation is a concept widely misunderstood by the public, Sumner explains. And as the economy recovers and interest rates rise closer to normal levels, the Fed intends to raise the interest rate it pays on reserves, so that they wont all suddenly spill out into the economy, causing inflation. Specifically, he explains how the increased demand for reserves has prevented money to enter the marketplace.

The full version of the article is available by clicking the following link.

A sample of the article is reproduced below:

Many recall being taught that deficit spending boosts aggregate demand for goods, which is inflationary. Indeed, the Obama administration enacted its $ 800 billion stimulus package for exactly that reason. Yet, recent research suggests that monetary policy has a much more powerful impact on demand and inflation, than fiscal stimulus. If we continue to run large deficits, we may eventually reach the limit of what people (and foreign governments) are willing to lend to the U.S. government. At some point we may be forced to literally print money to pay our bills. And it is quite true that virtually every major hyperinflation from Germany in the early 1920s to Zimbabwe in the 2000s, has been caused by excessive government debts. Despite the connection between debt crises and hyperinflation, this argument doesnt apply to the U.S., for several reasons.

To read the full article, please click the following link.

About the Author:

Scott Sumner studied economics at the University of Wisconsin, and received a PhD from the University of Chicago. He has done extensive research on the role of the gold standard in the Great Depression and is currently a professor of economics at Bentley University, where he has taught since 1982. Sumner also writes economic articles for Rare Coin Wholesalers and a blog on monetary policy called TheMoneyIllusion.com.