How is Gold reacting after the midterm elections?

The other side of the belief that the USD will decline is the knowledge that USD is valued against currencies of other countries – which can be MUCH more unstable than the good ol’ USA. It’s the net result that’s important, and it’s too early to tell how that will work out. In your friendly Gold Enthusiast’s eyes, of course. You are welcome to have a different opinion.

Because even though US elections change who’s butt is in the chair, they’re still sitting in the same chairs. “Changing government” means revolution or restructuring, which the US hasn’t done in over 200 years. After US elections the new butts are still restricted by the same laws, and while they may try to go around those laws it’s the stability of the laws that really matter.

So while some try to pre-judge the effects (such as here and here), we’re content to wait a little while and see what the market does. Very seldom does the initial reaction dictate the final direction in the trading world – because there’s always another factor around the corner, a different black swan getting ready to fly.

Signed,

The Gold Enthusiast