According to past experiences, companies are reminding investors that in March 2008 gold prices rose to over $1,000, but dropped to $740 in November when the elections took place. Gold prices will most likely drop in the year leading up to presidential elections, according to Terry Hanlon, President of Dillon Gage Metals.
Hanlon also stated “Not only do incumbent presidents try to keep the public focused on good economic news” — which is not good for gold, writes Hanlon — “but the White House also typically tries to jawbone the price of gasoline downward to keep inflation in check.”
It is clear to individuals who analyze the connection between lower gold prices and US presidential elections that political leaders dive the attention of gold investors by distorting the picture of economy and embellishing upon the record of their policies.
Investors can suffer during the elections time and prices might go up right after, but that is not guaranteed.
With the elections coming up, now may be the perfect time for investors to sell their gold to avoid disappointment.