Gold pushes deeper into 1900s, electoral college poll tightens
(USAGOLD – 10/21/2020) – Gold pushed deeper into the 1900s this morning on hopes that Washington would find its way to a stimulus agreement and worry deepened over a second wave of the coronavirus. It is up $13 at $1924. Silver is up 47¢ at $25.17. With two weeks left to go before the election, the polls have Biden ahead by a wide margin in the popular vote, but it is in the electoral college where the rubber meets the road. There, according to Real Clear Politics poll numbers, the election is still pretty much up in the air. As of this morning, Biden has 216 votes likely or leaning in his favor and Trump has 125, according to RCP. Toss-up states, however, account for another 197 votes and the polling in many of those battleground states is fairly tight (Biden’s 49.2% to Trump’s 45.2% – on the average in those states).
Mine company analyst and investor Bob Moriarity thinks gold will be the real election winner in 2020. “The Republican and Democratic candidates for president may be the most flawed in U.S. history,” he writes in a piece posted this morning at his 321Gold website. “And yet one of these two men – God help us – will be sworn in this January. If you’re like me, you’re not betting on either one. Government spending is already out of control. Replacing Trump, the self-proclaimed ‘King of Debt,’ with Biden, a 47-year career politician, is unlikely to improve matters. Whoever wins, we lose. That’s why I’m putting my money on gold. Other investors appear to have done the same. The yellow metal is up 26% for the year, almost three times higher than the S&P 500. I see only additional upside potential.”
Chart of the Day
Chart note: Since 1971 and global departure from the gold standard, the U.S. dollar’s decline has gone unchecked. The 1971 dollar is worth just 15¢ today, or put another way, what might have cost $1,000 in 1971 costs $6,670 today. Since the founding of the Federal Reserve in 1913, the dollar has been in constant decline with the exception of the 1930s depression years. It is now worth 5¢ when the rise in consumer prices is taken into account. The price of gold, as you can see, has responded accordingly living up to its reputation as the ultimate long-term store of value.