“If Obama Gets Re-elected Gold Is Going To Go Through The Roof”

“A win by Romney is generally seen by investors as a downside risk for gold,” says Joni Teves of UBS. “Nobody wants to do anything until the elections are out of the way.”   ”The real “Romney risk” for the yellow metal has nothing to do with fiscal policy. Instead, traders and investors are focusing on the likelihood that if Mr Romney wins the November 6 election, he would replace Ben Bernanke with a more hawkish chairman of the Federal Reserve when the latter’s term expires in January 2014.  If that means a change in direction from the Fed’s current experimental and super-accommodative monetary policy, gold could suffer. Recall the sharp sell-offs earlier this year when expectations of quantitative easing were deferred.”

Gold will not suffer when there is a change and a move away from ultra, ultra loose monetary policies. As was seen in 1980, gold’s secular bull market is likely to end if the Federal Reserve again achieves positive real interest rates.  As was seen in 1980, gold will only fall towards the end of the interest rate tightening cycle – this could take many years.  Likewise, an Obama victory may be the green flag gold bulls have been waiting for.”   The 45th U.S. President is less relevant to the gold price than the wider global monetary, macroeconomic, systemic and geopolitical fundamentals – all of which remain extremely positive for gold. 

From Goldcore:

Today’s AM fix was USD 1,718.00, EUR 1,321.54, and GBP 1,065.89 per ounce.
Yesterday’s AM fix was USD 1,713.50, EUR 1,322.66, and GBP 1,067.07 per ounce.

Silver is trading at $32.78/oz, €24.93/oz and £20.12/oz. Platinum is trading at $1,578.75/oz, palladium at $604.75/oz and rhodium at $1,070/oz.

Gold edged up $0.50 or 0.06% yesterday and closed at $1,709.50. Silver hit a high of $32.118 and pulled back but still finished with a gain of 0.05%.


Cross Currency Table – (Bloomberg)

Gold inched up on Wednesday but traders remain cautious ahead of the nonfarm payrolls report and the imminent US presidential election.

The devastation of Hurricane Sandy will be a further blow to the already fragile U.S. economy. The destruction of property and vital infrastructure – two of the vital components in the wealth of a nation is negative for the economy. The last thing the over indebted families and close to default U.S. government needs are more very expensive reconstruction works. Reconstruction and ‘stimulus’ has to be paid for either by the tax payer in the form of taxes or a further increase in the money supply and inflation.

Event risk is high with the aforementioned issues including a change of power in China and multiple policy meetings at various central banks.

Today, the September eurozone unemployment figures released were 11.6% up from 11.5% in August.

The US fiscal cliff involving steep government spending cuts and tax hikes looms in January and is likely to support gold at these levels and lead to higher gold prices in the coming weeks.

Violence in South Africa’s mining industry continues.  The police fired tear gas and rubber bullets on strikers and protesters at top platinum producer Amplats today.

The Financial Times had an interesting article that suggested that Mitt Romney is a “threat to the gold price” (see news) and quoted an executive in a jewellery group who said that “if Obama gets re-elected gold is going to go through the roof.”

The truth is that, gold is likely to go much higher in the course of the 45th President’s 4 year term – whether there is a President Obama or a President Romney.

The article suggested that gold investors would vote for Mitt Romney due to concerns about “potential” currency debasement and the US government’s indebtedness and that the Republican Party’s rhetoric of deficit reduction appeals to them:


Gold Spot $/oz, 20 Days – 30 Minutes – (Bloomberg)

“It is therefore ironic that the single greatest risk to gold at the moment is probably a Romney victory in next Tuesday’s presidential elections.

“A win by Romney is generally seen by investors as a downside risk for gold,” says Joni Teves of UBS. “Nobody wants to do anything until the elections are out of the way.” 

A surprise win by Romney could lead to very short term gold weakness but the scale of the fiscal and monetary challenges facing the White House and Federal Reserve mean that the down side risk is short term and limited and investors should continue to fade the noise and focus on the long term diversification benefits of gold.

The FT continues

“History supports the case. As James Steel of HSBC notes, gold’s most dramatic rallies – in 1980 and 2011 – have occurred with Democrats in the White House (Jimmy Carter and Barack Obama). And if Mr Romney can succeed in bringing down the deficit, that could lead to a stronger dollar and therefore weaker gold.”

History supports the case somewhat. It is important to point out that gold rose for the 8 years of George Bush’s Republican Presidency. Many gold buyers would be concerned that Republican rhetoric regarding deficits is just that – rhetoric.

“But the real “Romney risk” for the yellow metal has nothing to do with fiscal policy. Instead, traders and investors are focusing on the likelihood that if Mr Romney wins the November 6 election, he would replace Ben Bernanke with a more hawkish chairman of the Federal Reserve when the latter’s term expires in January 2014.

If that means a change in direction from the Fed’s current experimental and super-accommodative monetary policy, gold could suffer. Recall the sharp sell-offs earlier this year when expectations of quantitative easing were deferred.”


Gold Spot $/oz, 01 November 2010-31 October 2012 – (Bloomberg)

Gold will not suffer when there is a change and a move away from ultra, ultra loose monetary policies. As was seen in 1980, gold’s secular bull market is likely to end if the Federal Reserve again achieves positive real interest rates.

As was seen in 1980, gold will only fall towards the end of the interest rate tightening cycle – this could take many years.

“Likewise, an Obama victory may be the green flag gold bulls have been waiting for.”

The 45th U.S. President is less relevant to the gold price than the wider global monetary, macroeconomic, systemic and geopolitical fundamentals – all of which remain extremely positive for gold.



NEWS
Gold Set to Trim Monthly Loss as Holdings Climb, Dollar Weakens – Bloomberg

Gold to snap 4-month winning run; U.S. data, election eyed – Reuters

Gold futures settle higher, back above $1,710 – Market Watch

Eastern U.S. Struggles Back to Life After Sandy Onslaught – Bloomberg

COMMENTARY

“If Obama gets re-elected gold is going to go through the roof” – The Financial Times

Why do the Germans want their gold back? – Market Watch

Sell your euros and hoard gold as ‘war’ looms, says forecaster – The Independent

America’s Great Endangered Species: “The 99%” – Zero Hedge

Big Money Is Bullish On Gold – Gold and Silver Blog

Comments

  1. It would surprise if a change in stooge #1 at the helm would make one iota of difference to any policy the US Republic of Zionism makes.
    Both parties are so beholden to the Jewish lobby perse and the Zionist WS Banksters in particular, their function is entirely one of executing their orders.
    Every administration has always been completely stacked with WS hacks and Zionist plotters that what the mouthpiece, aka ‘President’, says, has no bearing on what will actually happen.
    We’ll be stuck with the same criminality, gerrymander, Kleptocracy, insider favouritism, market rigging and Gold and Silver suppression.
    We need Direct Democracy, and we need it now!

    • Amen!

    • The US was never intended to be a democracy.  It WAS a republic.  There is a huge difference.  A constitutional republic focuses on a set of rules/laws that is designed to protect the individual from the “group”.  Hence, individual rights like in the Bill of Rights.  In a democracy, it is majority rule.  That means the majority can vote to infringe upon the minority’s rights. The word “democracy” is never found in the Constitution. Republic is. The Founders knew the difference.  When you give up your individual rights for the benefit of the majority, the nation is toast(like now).  Both Greeks and Romans were the first republics.  Both converted to “democracies”.  Both imploded much like we are today.

    • robertsgt40 ”Direct Democracy” should not be confused with the democracy that’s preached and practised today. Direct democracy was practised to some extent even in the republics you mention. 

      That means the majority can vote to infringe upon the minority’s rights” – One can swing that around and say that in a republic, where zero direct democracy is practised, it means the minority can vote to infringe upon the majority’s rights. So it can cut both ways. This is why it is important to have a basic set of rules or laws that cannot be voted away… and what better way than to adhere to the Laws of the Most High?

    • Direct democracy is when all citizens from one country meet together somewhere so that they can decide more directly about who should be the country’s president. Indirect democracy is the opposite of it. You can’t have direct democracy today because a lot of people need to meet up together. Imagine 500 millions of American citizens all meeting up together in a specific place! This type of democracy work very well on a country with a low population such as the Vatican.

  2. Lol no agenda here! let me see UBS has been in the news a lot lately there not doing so good….


    Oct. 31, 2012, 7:30 a.m. EDT
    UBS Lays Off 50-60 Traders in Asia; 25-30 in Tokyo
     

    UBS to Cut 10,000 Jobs in Major Overhaul

    OCTOBER 30, 2012, 4:17 


    UBS Capitulation a Boon for Deutsche Bank

     October 31, 2012
     
    Global investment banks such as Barclays Plc (BARC) and Deutsche Bank AG (DBK) will probably increase their market share after UBS AG (UBSN) decided to scale back its investment bank in the face of higher capital requirements.

     

    Girlfriend Of UBS ‘Rogue Trader’ Made Him Reveal Losses

    Read more: http://www.businessinsider.com/girlfriend-of-ubs-rogue-trader-made-him-reveal-his-losses-2012-10#ixzz2AsqNSuDp

     

  3. The choice of presidents at this moment will probably not change the course of the country or world.  Romney is not Moses, parting the golden seas with a wave of his shepherd’s staff.  The person who occupies the WH won’t change the supply of gold one iota.  The next president won’t change the $5 trillion in additional  US GAAP rule debt we’ll acquire next year.  In four year we’ll have  another $20 trillion in mandated expenditures that the next 3 generations will end up paying, or not.

      The new guy in the WH won’t change the US or world wide demographics that are making tax revenues harder to increase as we all age.   The various fiscal cliffs, ours being the worst, will still kill GDP by 3-5% if not resolved.
      The refusal of the occupant of the oval office and the 450 or so munchkins in Congress will just end up putting off the adult decisions of tax policies that might help curb the worst problems of our present day fiscal ineptitude.

    Gold could care less who occupies the seat of power.  It is a power in itself.  It does  not bow to the next skin bag who climbs on the throne, delusional in his thoughts he can control things. Gold makes the rules, not the other way around.
     

    • I agree, idiot in chief isn’t going to matter. Besides we are past a tipping point with printing printing printing of the dollar and when it starts to enter the economy we are going to see massive hyperinflation. The path has been set and at this point all we can do is hang on for the ride and stack what we can.

    • The question before us is not, “Are we going to Hell in a handbasket?” but rather, “How quickly are we going to Hell in a handbasket?”.  As I see it, Obummer will take us there a little faster, Romney a little slower.  Slower is better because that could give us a few more precious months in which to prep.  Time, my friends, is more precious than gold… but only if it is used!
       

    • Time sure is precious! You can recover the physical gold and silver that you’ve lost but you’ll never recover your lost times. If there is a way, I would have converted all my precious metals into extra time and it will be always at my possession.

  4. The fiat Ponzi scheme needs QE to run the cause for a little longer. If QE is stopped, I believe the said Ponzi scheme will collapse much faster. Thus, from this perspective alone, it doesn’t really matter who gets elected when the choice is between Ole Big Ears and Romney. I might of course have the cat completely by its tail. Just my two cents.

  5. IF Obama wins this election never mind the Gold Going Through The Roof I’m Going Through The Roof. LMAO

  6. Yes Veracity, it is all the Jew’s fault, every bit of it.
    [sarcasm/off]

  7. @Mammoth Well you’d better get acquainted with reality, and do some research into the all encompassing influence Zionists have on every aspect of American society, from the Legislative, Executive, Judiciary, Corporate, WS you name it. Even Ron Paul voiced his deep concerns about this nefarious influence and many Jews express the same abhorrence, e.g. Dr. Alan Sabrosky and many others.
    You know that you’ve lost your sovereignty when a war criminal, mass murderer and arch racist like Netanyahu gets 29 standing ovations from our servile politicians for a speech filled with hatred, lies, war mongering and calls for WWIII, which you, the US taxpayer will have to foot and fight, giving your blood for the benefit of the Jewish state.
    Surely the most cogent proof of the nefarious Zionist influence, and a most despicable display of servility by our elected ‘representatives’ who are supposed to serve our interests and not support another terrorist state.
     
    A state which incontrovertibly was behind the craven attack on the USS Liberty and 911, amongst others!
    In both cases they attempted to create as much mass murder as possible by deliberately destroying all life boats on the Liberty and by destroying all the stairs and elevators with explosives in the twin towers right after the impact. Had they succeeded there would have been up to 50,000 massacred by the Jews on 9/11.
     
    You may sneer at this reality, but once you wake up from your MSM (all owned by Zionists interests) induced stupor you’ll wonder how this could have been going on for so long, and how American tax payers still can send $5b annually to a state which views ‘Gentiles’ as far inferior and no better than slaves to the Jews, and commits such atrocities against its very benefactor!!!

    This is just reality and there is no agenda, likes or dislikes for any group, race or nation, just the plain truth, which many have finally come to appreciate, including Ron Paul, and that’s why he was rigged out of his nomination. 

    • One thing I can’t stand is anyone who preaches hatred of any one religion, race, group, sexual orientation… grow up and learn. We have treaty obligations with Israel that we can’t back out of without looking very bad on the world stage.

    • I agree, Mary.  In fact, every single person I’ve ever seen / heard / or read comments from who said that all our problems are created by one particular group has ALWAYS been proved wrong at some point.  Most often, they come on with “Well, the reality is…”, as if they are the caretakers of reality by appointment from God.  Sigh… 

    • @MaryB
      @Ed_B

      Ya MaryB & Ed_B
      lol putting you two together like that looks like a marriage, anyway I caught a “veracious smell” of a comment last night posted by Idel here.The problem debating with this type of individual is there fantasy world is built around hate. All that truly comes out of the debat is more spilled hatred and a leed into there fantasy world. It’s kind of like a wine-o bum on the street and they try to start a conversation with you.You try to be polite but you dont want to slow down enough to communicate. If you did stop what they babel out you can’t understand or concentrate on over the smell of piss and alcohol.

      Well I think I did pretty good at trying to be polite. Considering normal corse of action.    

    • No comment.

    • @427 LOL! The marriage of Mr. and Mrs. B!

  8. @MaryB
    You must really hate Netanyahu then for all the heinous crimes he’s committed and the hatred, oppression, illegal land grab, apartheid, mass murder, massacres and racism he’s perpetrating against the Palestinians.
    And all the crimes against the US, their sole benefactor, in a vile ploy to create an atmosphere of hatred against the Muslims, which the Zionist owned MSM is proffering ad nauseum.
    I’m glad you’re on the same page and abhor such atrocities and the craven servility our politicians show to all their sponsors who gladly pay them millions for their loyal service.
     
     
    @Ed_B  
    Same old ploy, nowhere have I said that all our problems are created by the Jews. In fact the message is clear, we are being duped and brainwashed to believe we have a choice in electing our ‘representatives’ when in fact it is the big money moguls who anoint their stooge time after time.
    It just so happens that a vast majority of informed people, including many Jews, say exactly the same thing, that the Zionists have an undue influence on politics and every aspect of life in the US and the western world.
    All these eminent people are then racists and bigots in your logic, including Ron Paul.
    But of course labelling someone who points this out a racist is always the same underhand tactic when facts and evidence is against you.
    It pays to have at least some clue on the subject commenting on.

    • Don’t push your hatred of any group on me. I said I don’t care for as in they need to change their ways. It does NOT imply that I “hate” them. They need t be educated and hopefully change their ways but that will not happen when there are people like you who try to make differences of opinion into hate.

    • In my opinion the suppression of the truth, especially when good folks as defined by the Word of God stand in harms way, is an act of the kind of hatred the Most High deplores. The Bible teaches for one, despite the best of sophistry and propaganda to the contrary, that the Most High is a God of perfect love and perfect hatred; meaning that He loves His own with a perfect love and hate His enemies with a perfect hatred. He expects the same from His own, because how can you possibly love the Most High and His children by loving His enemies? It is not possible, you’re deceiving yourself if you think it is possible. This is why we should never allow our efforts to expose the enemies of God to be derailed by the accusations the Accuser swing in our direction, accusations that include buzz words such as hater, bigot, Nazi, racist, anti-Semitic and what have you. 

      Personal enemies we must always forgive, those who become enemies based on personal differences, differences that don’t offend the Most High by the least bit. In fact, differences He doesn’t give any thought at all. E.g. to wear flashing green shoes doesn’t make you an enemy of God, but if someone hates you when you do choose to flash the green, you’ve got an obligation to forgive them on that account, because they manifest to be a personal enemy (and not necessarily an enemy of God). Needless to say, the Sons and Daughters of the Most High have no right to forgive His enemies, especially those who are by their very nature against Him. We must stop deceiving ourselves and allow others to deceive us.

      Let God be true and every man a liar, meaning that you shouldn’t allow any man/woman, including me, to take away your exegesis. Study unto the approval of the Most High and make sure that you obtain a saving knowledge of the truth. Godspeed.

    • @Silverbullion
      “The Bible teaches for one, despite the best of sophistry and propaganda to the contrary, that the Most High is a God of perfect love and perfect hatred; meaning that He loves His own with a perfect love and hate His enemies with a perfect hatred. He expects the same from His own, because how can you possibly love the Most High and His children by loving His enemies?”
      Interesting angle to take, and clearly one way of differentiating one’s preferences.
      In the Buddhist context there is a concept of totally abandoning all attachments i.e. Loathing, Liking, Yearning and Anger. Practising to overcome such attachments is a prerequisite to embarking on the path of Dharma by cultivating Love, Compassion, Equanimity and Joy.
      Where Equanimity is the abandonment of these attachments, and it is a great and liberating achievement once such venial sins are overcome.
      Everyone should try it.

    • The insistence on painting me as some hate filled racist bigot really baffles me in light of the fact that everything I’ve said is quite to the contrary.
       
      You see if you’re acquainted with the truth and reality and aren’t too timorous speaking out about it, then hatred has no place in your heart.
      I just look at the facts and reality and that’s as far as I need to go, feelings of loathing and hatred are for the unapprised, obtuse, confused and misled, and there are plenty such victims!
      I also fail to appreciate how anyone couldn’t feel revulsion at an entire mob of so called ‘representatives’ according 29 standing ovations to one of the most vile criminals spewing hatred, racism and warmongering for the cause of Zionism.
      Obviously they’re in the pocket of these human dregs via the campaign contributions, lobby payoffs, bribes, insider favouritism/trading etc. they pay for their loyal services while having their snout in the public troth pretending to represent YOU!
       
      It is also astounding to realize that such a vast majority of people haven’t woken up to the fact that our Democracy, Liberties, Constitutional Rights and the Fourth Estate i.e the Media are all a total farce, and have been usurped by a powerful group which accumulated immense wealth at the expense of the productive citizens by criminal means, and who just happen to be also Zionists and who conspire, and committed the most vile crimes against humanity.
       
      Do yourself a favor and get educated about the control these Money Moguls wield over YOUR country and YOUR life, the crimes they’ve perpetrated against YOU and the way they fleece YOU of your wealth.
      You can start with the likes of the Rothschilds, Rockefeller, Perle, Wolfowitz, Blankfein, IASPS, PNAC, AIPAC,  JP Morgan, GS, MS, Cheney, Bush and the list goes on and on….
       
      And then reengage in the conversation, thank you.

    • @Veracity I get more than enough real love, compassion, peace of mind and joy from my God and His people. His people is for one not allowed to have any other gods before or besides Him. Despite this, Buddha is too fat and ugly according to my liking, so thank you, but I think I will pass. I trust that this will not upset you too the least bit, because anger for one was wiped out the door with “Equanimity”. You’ve got to love me for writing this, otherwise there is clearly more cultivation to be done on your part. 

    • @silverbullion That’s the beauty of it, no it does not affect me in the least. I’m neither religious nor agnostic, I prefer science to belief systems. You see belief is eminently dangerous as it can take on any form whatsoever, and needs not to be based on anything factual or verifiable. And therein lies the rub and makes this world such a hate filled place, full of religion but leading to derision and hatred as the Jewish state is ample proof.

      If blocking my posts “Awaiting Moderation” is your way of expressing your love then I  got the message loud and clear.
      But keep up the good work in the Silver sphere, one day it will break free and soar like a spirit freed from hatred and attachment………
      Shalom 

  9. @Veracity I am also not of the religious type; serving my Creator is a way of life for me and it is 100% backed by science. It is certainly not a religion. My Creator doesn’t expect of anyone to believe in or to be persuaded by irrigational BS, fables and what have you. He is as rational as it gets and expects the same from His children or followers.

    “If blocking my posts “Awaiting Moderation” is your way of expressing your love then I got the message loud and clear” – I haven’t blocked any of your posts. I have zero ability to block any posts here. This site is run by The Doc and Bull Run. Take it up with them.

    In addition, please don’t write as if I condone or support what is happening in the modern Jewish state called Israel. I am not fooled by apostate Israelitism which corrupted Judea so thoroughly that the God of Heaven caused the Judean state to be completely destroyed by the Romans in 70 A.D.

  10. Veracity…no one is blocking your posts.  ”Awaiting Moderation” is just the spam blocker being tripped.  We all see it occasionally.  

    • Exactly lol.

      Even if it was not the “spam blocker” doing all the moderation, I personally wouldn’t mind if the Doc and Bull Run choose to deliberately moderate my posts. It is their website and completely up to them as far as I am concerned. It will not change the truth one iota. 

    • @UglyDog Ok, it might be an automatic trigger, so maybe the post being held back will be allowed if silverbullion realizes this, as I’m sure he will.
      Not accusing anyone of anything, just wondering what happened since I’ve never encountered this before, but I’m sure you’re probably right. Thanks for pointing this out. 

    • @Veracity “Not accusing anyone of anything, just wondering what happened since I’ve never encountered this before, but I’m sure you’re probably right” – You’ve already accused me, it is black on white for anybody that can read. lol You should not allow the Accuser to use you in such a manner. Tell him to get behind you.

    • @Veracity
      More false accusations by the Accuser. Who exactly painted you “…as some hate filled racist bigot really baffles me in light of the fact that everything I’ve said is quite to the contrary”

      You’re running circles on the account of Buddha, you should sit down, take a deep breath and read through all of the above posts. You should then realise that your imagination is working over time.

  11. Obama or Romney…. As far as fiscal policy goes, they are the same. They are puppets for TPTB and will ride this train wreck to the end of the line. They can’t turn back now, it’s way to late in the game for that! If they don’t secure martial law and one world government they are going to be imprisoned or worse and they know it!

    • Yeah, Obama and Romney, not a lot of difference there.  However, when we elect a President he comes with an entire entourage.  And some of the people in positions of authority now must go, specifically the Attorney General, Eric Holder.  The man is a sociopath, a psychopath, a narcissist, one evil man.  I live in Arizona and if you have been following the Fast and Furious Gun Running scandal you’ll know exactly what I’m talking about.  Treason, plain and simple.  And nothing happens.  These people are immune.  He won’t resign.  Congress won’t impeach him.  So, changing Administrations is the only way to remove him from office.
       

    • @UglyDog: I agree. Obama most go. But I’m not voting for Romney, I despise that crook.

    • Well can be safe from that “train wreck” by jumping of the window and then use the precious metals transportation. If we let Ron Paul or Gary Johnson become the president, at least they’ll make everyone aware of the current situation before it’s too late for them to realize.

  12. If that’s the case, then I hope that Romney wins the election so that gold and silver’s prices are going to get down which means it will be a big opportunity to buy more precious metals very fast and cheaply. I also hope that Gary Johnson gets at least 5% of the total US votes so that he could end the two-party system.

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