It is pretty common for investors to seek safe havens for their assets, especially when the markets are experiencing times of turbulence. Markets typically get a bit stormy during recessions, depressions, or some kind of political uproar. The recent 2016 presidential election was no exception.
The uncertainty of the outcome of a presidential election is never good for the stock markets. Presidents who are in the final year of a second term are often less predictable than they are in previous years. This adds to the lack of clarity for stock market investors. Investors want to be assured that their assets are protected, and will hold the same value for as long as possible. Investors generally feel that it is logical that their investments to remain safe.
What Is Considered A Safe Haven?
A safe haven is an investment that is considered wise because it will retain the same value over time. In some instances a safe haven will also increase or decrease in value, but by generally small margins. Investors seek safe havens to protect their assets and avoid any financial loss. Safe havens do change over time, but one that is generally considered rather steady is gold. Investors expect the election of a new president to be a time for market distress. Gold has always been a focus for election-related trading. During the 2016 election, gold had seen a series of fluctuations, especially during the FBI investigation into Hillary Clinton’s deleted emails. In short, gold is considered a prominent safe haven asset despite the fact that it does regularly fluctuate.
Nothing Trumps Gold
On Tuesday November 8, 2016, the Presidential race was close to say the least. As the evening progressed and it looked like Donald Trump might win the keys to the white house, the price of gold began to soar. Trump unexpectedly defeated Hillary Clinton in the early morning of November 9 2016. Gold then saw its highest inflation since October. The increase in price was more than $31.00 an ounce. The jump was due to Trump’s intended financial plans to increase fiscal stimulus measures, and cut taxes, which would ikely result in inflationary pressures in the economy.
What Does This Mean For You?
Quite a bit if you are thinking about beginning the refining process for your dental scrap. When we pay our clients for their scrap, they have an option to exchange it or a portion of it for gold Maple Leafs in lieu of cash. This is a great way to hedge against inflation as historically, the value of gold increases in inflationary environments.
Capitalize on the changing times by calling us today to receive a free refining kit for your dental scrap.