Joe Biden announced Sunday that he is ending his presidential campaign, but he intends to finish the current term. This article may be political in nature, but it will have major ramifications for investors, including gold and silver bugs.

The bullion markets have been relatively quiet in recent months. The frenetic buying which kicked off in the spring of 2020 lasted for nearly 3 years, before metals investors paused for a breather. Premiums have since come way down, and dealer inventories are fully replenished.

Bullion investors in the U.S., who tend to skew conservative or libertarian, may be feeling less anxious in recent months.

Donald Trump has been rising in the polls, while Biden has looked more unelectable.

Pessimism about where the country is headed has been a major driver in the markets for physical gold and silver. For many, Trump seems to represent the "right track." His election in 2016 led to a couple of quiet years, and demand is subdued once again with Trump as the front-runner.

Whomever the Democrats select to replace Biden, the question will be whether they have significantly better prospects to beat Trump in November. If he or she does, expect U.S. investors to buy more gold and silver.

Vice President Kamala Harris looks to be in the pole position, though she was not immediately endorsed by all prominent Democrats. However, the Democratic National Convention won’t begin for nearly a month.

The months just ahead in the bullion markets may look a lot like the past few months, provided Trump can hold onto his current lead in the polls.

The failed assassination attempt may have only strengthened Trump’s odds, and it isn’t clear who Democrats might offer as a solid counter.

It is important to note that this commentary is about the potential demand for physical bullion products in the U.S. and how that impacts premiums – not the direction of paper prices. There often isn’t much of a connection, at least in the short term.

Any sustained surge in demand for metal in the U.S. will likely result in higher bid and ask premiums for coins, rounds, and bars.

Money Metals Exchange and its staff do not act as personal investment advisors for any specific individual. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. Readers and customers should be aware that, although our track record is excellent, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing through Money Metals, you understand our company not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. This Website is provided “as is,” and Money Metals disclaims all warranties (express or implied) and any and all responsibility or liability for the accuracy, legality, reliability, or availability of any content on the Website.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures