VIDEO - David Morgan: Does the US Election Matter for Gold and Silver?
David Morgan of the Morgan Report gave the same answer he gave four years ago when Donald Trump won his first term.
Election day has been and gone in the US, but with votes still to be counted it’s too soon to tell who will emerge as the winner of the presidential race.
“I think we went through this four years ago before the election, and I recall my answer being something along the lines of, ‘The economic problems are so vast it really doesn’t matter that much who’s in the White House,'” he said the morning after Trump and Biden faced off at the polls.
“It might on a temporary basis as far as for a few weeks or months post-election one candidate or the other might cause a different reaction slightly, but the overall trend cannot be reversed regardless of which political party has the platform.”
Thus far that stance seems to be proving true. Gold has experienced little movement this week, staying mostly within US$20 of US$1,900 per ounce. Meanwhile, silver has stayed around US$20 per ounce.
Morgan expects both metals to see little movement for the rest of the year, but in the long term the picture remains positive — although that’s at the expense of the global economy.
“We continue to borrow more and more money. It’s basically running in place on the treadmill with the carrot out in front,” he explained. “Sooner or later we think we’re going to get that carrot, but we really don’t and we have to continue to run faster — which means print more money. It’s a sad condition that unfortunately doesn’t usually end very well.”
Watch the interview above for more from Morgan on the US election and precious metals. You can also click here for more of our election coverage.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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