Joe Biden wins U.S. presidential election now what does this mean for gold prices and gold stocks
Biden and gold: History suggests potential upside
The last Democrat in charge of the White House was Barack Obama, and if Biden wins on November 3, the country he will lead will be markedly different than the one he saw as Obama’s vice president.
The overall US market is one reason why. Before the coronavirus outbreak, the Dow Jones Industrial Average (INDEXDJX:.DJI) had been on a steady upward trajectory since February 2009, and in February of this year, the index of 30 large US-listed companies reached an all-time high of 29,398.
The rally was of course short-lived. Markets plummeted globally just over a month later, and the Dow hit its lowest point since November 2016 at 18,588.
Performance of the Dow Jones Industrial Average over 25 years. Chart courtesy of Trading Economics.
At the same time, the price of gold has been incrementally increasing since November 2016 — it’s risen from US$1,183 per ounce at that time to around US$1,900 a month before this year’s election.
When Obama took office in January 2009, the price of gold was valued at just over US$890. By the end of his first term, the metal had climbed around 88.6 percent to US$1,685.
While his first four years benefited the metal greatly, Obama’s second term proved more volatile. Gold slipped from the US$1,685 level in 2013 to approximately US$1,195 in 2017, a 28.9 percent decrease.
Joe Biden wins U.S. presidential election sooooo 19 Election Stocks to Buy now because Joe Biden Won in 2020
- Tesla (NASDAQ:TSLA)
- Caterpillar (NYSE:CAT)
- Canopy Growth (NYSE:CGC)
- UnitedHealth (NYSE:UNH)
- Centene (NYSE:CNC)
- Sherwin-Williams (NYSE:SHW)
- Summit Materials (NYSE:SUM)
- Prologis (NYSE:PLD)
- Teladoc Health (NYSE:TDOC)
- American Water Works (NYSE:AWK)
- NextEra Energy (NYSE:NEE)
- Procter & Gamble (NYSE:PG)
- Walt Disney (NYSE:DIS)
- Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B)
- A.O. Smith (NYSE:AOS)
- S&P 500 Equal Weight ETF (NYSEARCA:RSP)
- iShares MSCI Canada ETF (NYSEARCA:EWC)
- iShares Gold Trust (NYSEARCA:IAU)
- iShares U.S. Healthcare ETF (NYSEARCA:IYH)