Gold and Silver Capped Until After the US Election?

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"Prices may remain contained until after the U.S. election but we expect that soon after, precious metal prices will again surge."

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The far from resolved debt crisis in Greece, Spain and most countries in the Western world means that this is another correction and investors and store of wealth buyers should continue to accumulate on the dip.

Prices may remain contained until after the U.S. election but we expect that soon after the election (we expect Obama to be re-elected), precious metal prices will again surge. Indeed, from November into the early months of 2013, we could see one of the largest upward price movements in gold and silver so far in their bull markets.

U.S. election years tend to see gold underperform vis-ŗ-vis other years and this was seen in 2004 (+4.7%) and 2008 (+5%) when gold saw only marginal gains compared to the 17% annualized dollar returns seen in that decade.

Post election years saw stronger gainsówith a 22% in 2005 and a 25% return in 2009.

This is likely due to the governing administration, often in conjunction with the Federal Reserve, doing all it can in order to artificially boost the economy and maintain power. . .View Full Article

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