Addison Wiggin

“Obama is just the man for the job if you’re hoping for a significant increase in the gold price,” writes Jan Skoyles.

Uh-oh, here we go again: Another reason to “root for” Obama, even if you follow our guidance… and Doug Casey’s… and you don’t vote tomorrow.

Full disclosure: Ms. Skoyles is a Brit — but a highly perceptive one, as you’ll soon see: She heads up research at a U.K. bullion dealer called The Real Asset Co.

“The evidence showing Democrats destroying the dollar more than Republicans, and second-term presidents benefitting gold prices even more during their second innings, is overwhelming,” Ms. Skoyles writes.

“Even though Democrats prove to be the best party for gold investors worried about the gold price, the Republicans don’t do too badly themselves — accounting for a net increase of 121.27% across their terms in office since Nixon, versus 358.68% for the Democrats.”



What’s more, “Our research also found presidents granted a second term have a marvelous time showing everyone just how much money they can spend, devaluing the currency further and making that precious metal glister even more.


”


Then again, “If the Republican gets in, then theoretically, the gold price won’t increase by as much. It may even drop slightly in the first year or so, but look at it as an excellent buying opportunity. Who sits in the White House is not something that fits in gold price fundamentals these days. Gold is going up, just how quickly depends on the president.”

Gold is getting back on its feet after getting knocked around on Friday – up $7 as of this writing to $1,684.

The $40 sell-off coincided with a “better than expected” jobs report, but as the saying goes correlation isn’t causation. Technical selling and profit-taking by weak hands also figured into the mix. Interestingly, many bullion dealers reported heavy “buying on the dip” from institutional investors Friday.

Whether it’s pre-election jitters, or another factor — or maybe no factor at all — a slump in sales of bullion coins from the U.S. Mint might finally be turning around.

October was the first month this year in which sales of Gold Eagles outpaced sales from the same month a year earlier.



The pattern is the same for silver. But it’s not shaping up to be a fifth straight record year
for silver bullion from the Mint — barring a major market dislocation before year-end. Through October, Silver Eagle sales this year total 28,948,000 ounces — 21% below last year’s pace.

Gold Eagle sales are down 40% for the same period.

Cheers,
Addison Wiggin

Addison Wiggin

Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He's the creator and editorial director of Agora Financial's daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar, and Why it's Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.

Recent Articles

Can Money Printing Cause Deflation?

Marc Faber

"There has been an issue that has preoccupied my mind for a long time," writes Dr. Marc Faber. "In economics, it is generally accepted that if the quantity of money and credit is increased, prices will rise… However, since economics is so complex… I question whether the expansion of central banks' balance sheets and policies of zero interest rates could have a deflationary impact…" The good doctor wrestles with the question, in today's essay...


Forget the Oil Crash – Crush the Market With Biotech Stocks

Greg Guenthner

The Biotech iShares ETF is up 23% since the Oct. 15th bottom. No, that is not a typo. Biotechs have torched the S&P over the past two months--more than doubling the returns of the big index. And biotechs as a group are up more than 38% year-to-date. In fact, since we first highlighted the June comeback, the Biotech iShares have gone nowhere but up.


How Low Will Oil Go – And What Can You Do?

Matt Insley

The oil market has been under siege for six months. From service providers to producers this downturn has been painful. Of course, we’ve known all along that oil prices were a little toppy over the summer. In fact, when asked just how low oil prices could go I usually answered with a simple “lower than you’d expect…”


Cuba’s Berlin Wall Moment

Peter Coyne

Our forecast that Cuba would be open and integrated within 5-10 years is on track after yesterday's big announcement. Ahead of schedule, even. Click here to see how some investors have profited and what the island's likely future is...


The $4 LED Trend You Don’t Want to Miss

Chris Mayer

The opportunity to sell and install LEDs is enormous. We’re talking about over a billion lighting fixtures. And the areas with the largest potential -- like parking lots -- have barely begun to change. Banker to the presidents Chris Mayer says you could triple your money in this new tech trend. Here's what you need to know.


How to Make the Casinos Pay You for a Change

Greg Guenthner

It's a theme we've shared with you since April. And it's only gotten worse. The gaming industry has come under all sorts of pressure--a situation I first noticed in the charts. The powerful, multi-year uptrends started showing cracks. And it wasn't long before those cracks turned into gaping holes you could drive a friggin' truck through. That's where things stand today.