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Analysts say gold prices stable until U.S. election is over

October 22, 2012154 view(s)
(October 22, 2012) - Those who invest in the yellow metal know that gold prices are very good now, a bull market that has been enjoyed for quite some time. Analysts believe that for now, the precious metals industry is stabilized and is not likely to see any strong swings one way or the other until after the presidential election in the United States has reached its conclusion. After this, according to a recent report by Mary O'Byrne in Resource Investor, the gold market should see further growth and give investors something to be very happy about if they happen to have gotten in at the current price level. Many analysts have reported that gold prices are approaching record levels and show no real signs of stopping in the long term. O'Byrne points out that precious metals are likely to do well since two major global players, China and India, are about to enter the season out of the year during which they tend to buy the most gold. This is likely to help keep the gold market strong and set up a far larger spike to occur once the election is over. Generally speaking, O'Byrne says, gold has a history of being undervalued during election years in the US and this is even better news for investors hoping to see a gain in a relatively short amount of time. O'Byrne sees current US President Obama being re-elected and data about the economy being revised after this to reflect reality rather than to stimulate economic growth. If this ends up being the case, gold and silver should do pretty well since those are the go-to investments for most investors when times get rough and currencies look as if they are losing their value. "There are historical parallels with the 1933 election when Roosevelt was re-elected and there was subsequently an admission that economic conditions were far worse than people had been previously led to believe," the reporter said of the current situation in the US. Plenty of economic observers have hinted at this being the case or flat out stated that it is in the media. Once the general public gets wind of this reality, if it is indeed the case, it is quite likely that the average investor will wind up looking to something aside from stocks and bonds to safeguard their personal wealth. This is the type of scenario under which investing in hard assets like gold, silver or platinum would be ideal, but there is also another component: the global nature of the economy means that other countries' central banks are likely to get involved in gold buying on a grand scale too. This means supply shrinks faster and prices should rise faster due to that as well. O'Byrne sums up the situation thusly, stating, "Smart money internationally continues to diversify into gold. Some of the wealthiest and most astute managers of money in the world today remain bullish on gold due to the very favorable macroeconomic, geopolitical and monetary fundamentals." Is it a smart idea to follow in the paths of these financial leaders? Each investor will have to decide for themselves, but many will choose precious metals to help secure their future.
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