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SOURCE: Precious Metals Brokerage Group International
Several IRA account holders are putting gold into their IRAs as a part of retirement asset diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how the recent election may or may not affect those who invest in Gold IRAs
Los Angeles, CA (PRWEB) November 18, 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 analyst’s 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.
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