The Gold Price appears to have ended its Range-Bound Trading with a Move Higher

The 2016 U.S. presidential elections are unprecedented. I don’t believe we have ever witnessed such acrimony between two candidates ever before. There has been a distinct lack of rational dialogue as the two candidates throw personal insults and petty gossip at each other instead of focusing on the issues that truly concern the American public. But, in addition to this, we have seen a totally biased mainstream media who clearly favour Clinton. They have continually pounced on every single piece of garbage they have managed to find in order to discredit Trump while ignoring practically all of the major catastrophic policy decisions of Clinton.

So the latest event regarding some of Clinton’s e-mails will certainly be some cause for concern. FBI Director James Comey wrote in a Friday letter.

“In connection with an unrelated case, the FBI has learned of the existence of emails that appear to be pertinent to the investigation. I am writing to inform you that the investigative team briefed me on this yesterday, and I agreed that the FBI should take appropriate investigative steps designed to allow investigators to review these emails to determine whether they contain classified information, as well as to assess their importance to our investigation,”

“Although the FBI cannot yet assess whether or not this material may be significant, and I cannot predict how long it will take us to complete this additional work, I believe it is important to update your Committees about our efforts in light of my previous testimony,” he added.

Analysts note that the U.S. election on Nov. 8 has the biggest potential to destabilize financial markets. Markets have been pricing in a Clinton victory, which has reduced gold’s appeal as a safe-haven asset.

However, if Republican candidate Donald Trump can gain some momentum in the final week on the FBI’s new investigation, it could tip the scales.

While it’s too early to make a clear determination, this development on Hillary Clinton’s emails has the potential to be a game-changer in the election. And, if that is indeed the case, market volatility could be higher in the near term, and precious metals markets are likely to trade with an upward bias.

As far as I am concerned, no matter who is elected, gold and silver prices are headed higher and investors who are currently in a state of complacency or sitting on the side-lines had better be prepared for some stomach-wrenching volatility in the coming weeks.

I have often written about the other fundamentals driving the gold price apart from the “expectations” for U.S. rate increases. While traders remain obsessed on what the US Federal Reserve may or may not do regarding interest rates, investors continue to pile into physical gold as a hedge against the corrupt global financial system that is becoming more precarious by the day.

Since the beginning of the crisis in 2006, central banks and governments have created roughly $100 trillion of additional debt, reduced interest rates to zero or negative and manipulated most markets. In spite of that, the very serious problems in the financial system that emerged in 2006 have not been solved. On the contrary, they have grown exponentially with global debt having doubled and derivatives of $1.5 quadrillion being mostly worthless and out of control. The European banking system is on the verge of collapse and this will also spread to the fragile American and Asian banks.

What few investors realize is that gold has outperformed all investment classes both in this century and in 2016. So far this year the price of gold in US dollars has risen by 24%.

Since almost all investment advisors do not recommend physical gold, less than 2% of investors worldwide have gold in their portfolios.  What would happen if global investors try to invest 10% in gold?

As I have stated countless of times, gold is not only a currency, its real money. It’s preserved wealth for centuries because it has a rare set of qualities: It’s durable, easy to transport, and is easily divisible. Individuals in every country on the planet recognize its intrinsic value even though the major western central bankers do not.

Unlike paper money, gold has survived every financial crisis in history. It’s a safe haven asset that investors buy when they’re nervous. Gold is the ultimate safe haven asset. Investors buy it when they’re nervous. In this case, gold protected investors’ wealth during a period of extreme uncertainty.

As I have stated many time, in this current financial environment, physical gold and silver will outshine all other forms of wealth preservation as long as it is held outside of the banking system.

This means, that it is essential to hold the physical metal and not paper contracts or exchange traded funds. It also means that you should not store your holdings with a bank.

TIPPreserve your financial liberty with physical gold and silver  >>