As the U.S. edges closer to a pivotal election, all eyes are on the presidential candidates. But in the background, something else is quietly rallying to new highs: gold. Whether it’s Kamala Harris or Donald Trump sitting in the Oval Office next year, one thing is certain—gold stands to be the ultimate victor.
Here’s why no election outcome can derail gold’s soaring trajectory and how this precious metal has positioned itself as the true wealth haven amid today’s turmoil.
The Perfect Storm Fueling Gold’s Surge
Gold isn’t just riding a temporary wave. It’s riding a perfect storm—a trifecta of economic, political, and global factors that all point in one direction: up. This year, we’ve seen gold surge by over 34%.
Analysts believe this momentum is only the beginning, with experts like Paul Wong from Sprott Asset Management and Phil Streible from Blue Line Futures forecasting prices between $2,850 and even $3,200 per ounce by year’s end.
The forces behind this climb? Record-high central bank purchases, sky-high U.S. debt, and geopolitical turbulence—from the ongoing Ukraine and Middle East conflicts to an election that’s keeping investors on edge. Wong notes that the bond market, once a reliable safe haven, is losing its appeal as it’s weighed down by persistent inflation, high debt, and relentless deficit spending. With this backdrop, gold has ascended to its current position as one of the few remaining true wealth-haven assets.
Election Anxiety and Gold’s Wealth Haven Appeal
This election season, uncertainty is the rule, not the exception. Many Americans are apprehensive about what a victory for either candidate will mean for their money, their savings, and the U.S. economy at large. And it’s exactly this type of uncertainty that’s making gold more attractive.
Western investors, in particular, have been snapping up gold to the tune of over $100 billion in purchases, marking the highest quarterly demand on record according to the World Gold Council. Louise Street, a senior analyst at the Council, describes it as a “fear-of-missing-out factor” that’s driven by election jitters and the anticipation of further interest rate cuts. Investors want to secure their slice of gold now before prices surge even higher, knowing that gold’s role as a hedge against inflation and geopolitical tension is more relevant than ever.
Trump or Harris? Gold’s Bullish Run Continues Either Way
So, what about the election itself? While it’s natural to wonder which administration might be more favorable for gold, the reality is that both present circumstances that will likely buoy gold even higher.
For Trump, a return to office could mean an aggressive trade policy that’s both inflationary and protectionist. A core piece of his platform includes substantial tariffs on foreign goods—20% on general imports, and a staggering 60% on Chinese goods. Economists project that these tariffs could add almost a full percentage point to the U.S. inflation rate. As consumer prices climb, the appeal of inflation-resistant assets like gold rises in tandem.
Alternatively, a Kamala Harris administration wouldn’t likely offer relief from inflationary pressures or economic strain. Harris is expected to continue policies that prioritize government spending, which could drive debt levels even higher and further weaken the dollar’s value. As a result, gold’s appeal as a store of wealth remains solid.
In the words of Paul Wong, “What changes the debt situation? Nothing really. It’s going to go higher.” When the debt continues to balloon, and neither administration has a feasible plan to reduce it, gold emerges as one of the most stable and prudent investment choices for Americans looking to preserve their wealth.
Record-Breaking Demand and Central Bank Buying
But it’s not just individual investors buying into gold’s momentum—central banks around the world are loading up on the precious metal like never before. In fact, 2024 has seen the highest levels of central bank purchases since the late 1990s, as governments look to gold to shield their reserves against currency devaluation and economic uncertainty.
Goldman Sachs analysts have highlighted that these “structurally elevated” levels of central bank buying will be a driving force behind gold’s sustained growth. For them, this isn’t a short-term play; it’s part of a multiyear trend toward securing assets that won’t crumble under inflation or political instability.
Gold’s younger sibling, silver, is also benefiting from this shift. Silver prices have climbed to over $34 per ounce, a level not seen in more than a decade. The dual role of silver as both a safe haven and an industrial metal adds an extra layer of appeal, especially with the global push toward renewable energy and tech-related infrastructure, which heavily relies on silver.
Election or Not, Gold’s on the Move
With the U.S. election only days away, Wall Street is holding its breath, but savvy investors aren’t waiting for the outcome to make their move. Gold’s unique positioning as both a wealth haven and a growth asset in today’s economic climate is why analysts like Chris Vecchio from Tastylive are confident that we’re in the “early innings” of a long-term shift toward precious metals.
Consider this: the Federal Reserve is set to meet right after the election to discuss yet another rate cut, continuing a trend that’s made interest-bearing assets like bonds less attractive and gold more desirable. Lower rates mean cheaper borrowing but reduced yields on traditional assets, pushing investors further toward alternatives like gold.
In uncertain times, the flight to safety is only natural, and with today’s unprecedented mix of factors—from geopolitical upheaval to election anxiety—gold is set to thrive regardless of which name sits behind the Resolute Desk next year.
The Takeaway
For anyone looking to fortify their financial future, the message is clear: gold is more than just an election play—it’s an insurance policy against everything that’s going wrong in today’s world. With central banks, hedge funds, and everyday investors all recognizing the staying power of gold, this election isn’t about winners and losers in Washington. It’s about securing a piece of an asset that, regardless of politics, has proven its value time and time again.
In the race for stability, gold has already won.
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