Could The Obama Administration Affect
The Price of Gold?
Politics have always, and will always play a role in the effects of the economy, including gold prices. When a new administration comes into office, it changes the entire dynamic of the economy. In a time like the present, when the markets have been down for so long and the economy is so defeated in most places, investing on gold and gold prices are the only sustainable thing that many people feel they can depend on.
In the 1970s bull market, the political situation was similar to that which is currently occurring in the United States, which leaves investors and predictors to assume that the gold bull market will react similarly to the way that it did in that time period in history, which was a stunning time for the gold market.
Gold increased in price as a result of the political landscape and goings on of the 1970s, and it is estimated that the same thing will happen again today. With an increase of more than 200% during that time period, it’s a good sign that the Obama administration could have the same effect on the gold market, and investors are all scurrying to get their hands on gold before it takes off for a whole new level of increase. Considering that when the republican Presidents of the 70s were replaced by Democrat Jimmy Carter gold prices skyrocketed more than 500%, it can be almost certain that the Barack Obama administration will have a similar effect on the gold markets.
There is no absolute way of knowing what will happen to gold prices after changes in the political world, but it’s estimated that the chances are high the price will escalate. The changing hands of political office have often had an effect on the gold markets. When you think about all of the similarities between the economy of the 1970s bull market and today’s economy, it’s easy to see how history is likely going to repeat itself. No one can know for sure, of course, and it’s also likely that gold prices could remain steady or even drop. However, it is far more likely that they will continue to climb, probably exponentially at times mainly because of the financial bailouts and stimulus programs Barack Obama has pushed through Congress.
The Obama administration will undoubtedly have an effect on the gold markets. The only question that remains is what type of effect it will have, as well as whether that effect will be a short-term or long-term one. According to the majority of gold investors and predictions, it will be a good influence that could cause gold to end up reaching nearly $5,000 an ounce over the next three to five years. Only time will tell.
Are you ready to invest in gold before the price skyrockets?