Andrew Maguire looks ahead to the gold price after US election day is finally over.
Talking Gold’ – a fortnightly update from Kinesis Director and precious metals expert, Andrew Maguire, providing a detailed round-up of the recent action in the gold and silver markets – a regular feature from the Kinesis Youtube show ‘Live from the Vault’.
In this week’s deep dive into the gold and silver markets, Andrew Maguire provides insight into the short and long term impact of the US election on the gold price.
The gold price after the US election
Andrew Maguire believes that regardless of the ultimate resolution of the US election, once an initial period of volatility settles the outlook for gold is positive.
For positive indicators for the gold price, the precious metals expert points to the massive stimulus package announced by each presidential candidate. According to Andrew Maguire, the vast inflow of stimulus into the economy will balloon global debt, in turn, swelling physical gold demand.
Relative to weakening fiat currencies, gold will do what it has done for thousands of years, act as a safe haven.
Andrew Maguire
International safe-haven physical demand
In the wider market, Andrew Maguire shares word of safe-haven demand coming in from large European and Asian banks. The precious metals expert reports the banks are already securing physical gold and silver against paper gold and silver, ahead of an anticipated depreciation of fiat value.
In an unprecedented move, the banks intend to take physical delivery for December gold long Futures contracts. The reports have confirmed by a source at the desk of a very large first-tier European bank, disclosing that their institution is busy locking in Futures contracts for delivery. The professionally hedged positions are seeking delivery, at the end of November.
Watch Andrew Maguire reveal China’s unprecedented move into physical silver, in last week’s Talking Gold from fortnightly Kinesis show ‘Live from the Vault’.
What does this mean for traders and investors?
In light of the current market conditions, Andrew Maguires suggests that margined traders should watch their “stops or stand aside until the situation becomes clearer.” Speaking on this period for investors, the long-time wholesaler believes “this is a hell of an opportunity to average in and buy some gold and silver at bargain prices.”
In the terms of the long term outlook for gold, Andrew Maguire predicts that “once the volatility has settled, very strong fundamentals will come into focus.”
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Next Episode: Andrew Maguire carries out another detailed round-up of the gold and silver markets.
The opinions expressed in this publication are those of Andrew Maguire and do not purport to reflect the official policy or position of Kinesis.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
