Do Elections Impact Bullion and Rare Coin Prices?

TRUMP'S PRESIDENTIAL WIN IS A CASE IN POINT

- BY JOSHUA MCMORROW-HERNANDEZ

Stock markets spiked when the news broke on the morning of Nov. 6, 2024 that Donald J. Trump had captured the Electoral College votes required to be elected for a second term as President of the United States. Trump became the first person since President Grover Cleveland in the late 19th century elected to serve two nonconsecutive terms in the Oval Office.

President Trump’s return to the White House was largely driven by issues relating to the economy, despite dropping unemployment rates and a robust stock market in the months leading up to the 2024 presidential election. Issues relating to immigration also played a role in the re-election. The Dow Jones Industrial Average rose 1,507 points on Nov. 6, 2024 as the world learned of Trump’s win over Democratic rival and sitting Vice President Kamala Harris. Wall Street rallied while many investors sold off gold and silver. As gold shed more than $50 an ounce, dropping from $2,720 to $2,665 in a matter of hours, the Dow Jones Industrial Average closed at a record high of 43,729.93. It was the first time the Dow tacked on more than 1,000 points in a single day since November 2022.

Meanwhile, gold prices continued taking hits, sinking to $2,590, a week to the day after the election. It’s a lot for bullion investors to digest. And this comes at a time when the world looks ahead to a four-year future with President Trump again at the helm. He returns to the Oval Office at a crucial juncture in world history while wars rage in Ukraine and the Middle East, and continued threats loom in North Korea, Iran, and Russia.