Gold should benefit no matter who wins the US presidential election, said Will Rhind of GraniteShares. But not for the same reasons.
Speaking to the Investing News Network (INN), Will Rhind, CEO of GraniteShares, said he believes the outlook for gold will be positive no matter which candidate wins.
“I think if President Trump were to be re-elected we would obviously see more of the same policies that have been enacted,” he explained. “So as it pertains to the economy, typically that’s been pro-stimulus … pro-the stock market. And so I think gold will benefit from his re-election.”
But a Biden victory wouldn’t be bad news for the yellow metal.
“On the other hand, if Vice President Joe Biden gets elected … then I think that from an economic perspective we’re likely to see gold do well, but for a slightly different reason in that there’s likely to be a lot more stimulus spending if there is a Biden presidency,” said Rhind.
When asked if historically either Republican or Democrat presidents have been more or less positive for gold, he said it’s more about the individual president than the party.
“I think it boils down more to the actual president themselves. But certainly in this day and age we’ve been taking on more and more debt from a government perspective … I think it just keeps getting worse from a debt perspective, which ultimately favors gold.”
Rhind also touched on gold’s recent price action. The precious metal is currently below US$1,900 per ounce, and he believes that could be because investors are in a wait-and-see mode before the vote.
“I think as it pertains to the election, what a lot of investors are doing is just sitting on the sidelines until there’s more certainty around the election. Obviously if people are sitting on the sidelines they’re not active in the market, and therefore they’re buying less and selling less,” he said.
Watch the interview for more from Rhind on gold and the American presidential election. You can also click here for more election coverage from INN.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.