Coming election bad for the metal market?

I agree. Huge deficits will continue regardless of the outcome of the 2010 election.

Want to see something interesting? I viewed a chart last month of of U.S. National Debt vs. the price of gold. It was dated 2000 - 2010 and I'd link it here but can't recall where it was - Google search time! Anyway, it was an almost direct correlation with the 2 overlapping one another almost exactly during the last 10 years.

This is a VERY bullish sign for gold.

 

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There were plenty of people that thought gold at $800 an ounce was going to correct itself and return to $500-$600 an ounce. They were alerting Us of the bubble years ago. With so much uncertainty on a GLOBAL scale, We have to ask the question.....What is the correct level for gold?

 

Perhaps I should have said correction. Although I do believe that PMs are undervalued (especially silver), I cannot imagine them sustaining this pace without some pull-back (or correction). PMs are starting to resemble real estate. I saw an ad on TV for how to buy and invest in silver (gold was not even mentioned)! We are truly in unprecedented times, but all investments have some risk including PMs. TC

 

seriously I think we are in trouble...will PM's continue to go up? YUP! will the elections matter? NOPE! and why is that? inflation is coming and will continue to come...will it matter that silver is $50/oz? NOPE! cause a loaf of bread will be $5 and a gallon of gas $6-8.... that's just my opinion...and I realize I sound like a survivalist nutcase... but inflation always erodes fortunes and savings...and looking at where the prices of pm's are at right now and what they should be at inflation adjusted values...I don't think they have an area to move up in as much as they just haven't kept the "hedge" as well as many people have touted them to be...

 

Trade relations with China will be more of an influence in the Precious Metals Market, than will be any one or combination of changes in the November elections.

 

no...

In reality the elections have nothing to do with the prices of metal. There are no differences between donkeys and elephants when it comes to fiscal policy.

How quickly the masses forget. Before the Presidential election both candidates were meeting with 43. If the McCain/Palin ticket had won, we would still have high deficits and a major debt burden. Instead of healthcare it would have been military/wall street spending.

The Federal Reserve is whom we should pay attention too. Bernanke a few days ago stated that QEII or III however you want to look at it is coming.
When world central banks no longer hold PMs (Au) and countries put into law that they will balance budgets and no longer hold debt is when it will be time to re-evaluate holding PMs.

Until radical changes are made... Trade for PMs and hold.

 

by your comments (and those of others here in this thread) you have made my point. Most investors think that there's nowhere to go but up...

 

Anyone who is in any Investment vehicle and is of that mindset , had better get out real quick. We all are simply speculating. What is true, is Newton's Law, " What goes up, must come down, eventually " .

 

Well, I think your comments made my point. So many people expect gold to correct that it is unlikely we are in a bubble. When you start to see ads to buy gold and silver with no money down, and hoards of people do it, THAT will be a bubble.

 

I was thinking that silver IS correcting itself with this bullish run. From my research it seems that silver still has a long way to go to get to where it should be. Personally I believe that certain world governments don't want high gold/silver prices simply because it would be the final nail in the coffin for fiat money in a world with no economic certainty. And I don't believe we are seeing the development of a PM bubble.

 

I suspect the election results have already been adjusted for in the current PM prices.

 

It may be possible that those who actually exert control over PM prices also exert control over elected officials ?

Just a thought

 

More like I think those who actually exert control over PM prices have invested in and gathered enough polling data to gain a reasonable expectation in how the elections are going to play out.

 

LOL...............Maybe, but somehow I feel all those millions of campaign dollars have to have some influence.