Saxo Head of Commodity Strategy Ole Hansen said in a note released Tuesday that precious metals outperforming through October could be a result of worries surrounding government spending if a single party were to gain control of both the White House and Congress.
“Besides continued worries about a further deterioration in the Middle East, we conclude that this strength is increasingly being seen as a hedge against a potential ‘Red Sweep,’ where one political party controls both the White House and Congress,” he said. “This scenario raises concerns about excessive government spending, pushing the debt-to-GDP ratio higher, while fueling inflation fears. Investors are turning to precious metals as protection, even as expectations for lower rates and easier financial conditions fade, as highlighted by the four key charts tracking this exceptional divergence.”
Hansen also noted several drivers of the bullish movement of gold and silver, including safe-haven demand, geopolitical tensions and de-dollarization driving strong demand from central banks.
Hansen said these moves have been confirmed by significant inflows into Western gold-backed ETFs, which had previously been experiencing outflows until May of this year.
Augusta Precious Metals(Full Review)
$0 (10 Years)
$50,000
"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings
Expand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.Goldco (Full Review)
Vary
$25,000
Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee
Expand Details
From precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ yearsAmerican Hartford Gold (Full Review)
Vary
$10,000
American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..