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Are Republicans or Democrats Better for Gold & Silver Performance?

smartknowledgeu's picture





 

Here’s a breakdown of gold and silver performance by political party for the last 5 US Presidential terms.

 

 

 

 

 

What is very clear from the above is that Democrat Clinton, who was very close to the banksters, and in particular, Citigroup banksters, was awful for gold and silver, while Republican Bush, who was very close to oil interests and loved war, was great for the performance of gold and silver. Gold and silver’s performance during Democrat Obama’s tenure thus far has been closer to their performance during Republican Bush’s tenure than Democrat Clinton’s tenure. However, I believe that part of gold and silver’s resiliency during Democrat Obama’s tenure has a lot to do with the fact that when Clinton was in office, the bankers actually had to lease tonnes of physical gold and silver into the open market to suppress the price of gold and silver because they could not yet use the immoral and unethical HFT algos they utilize today to suppress the price of gold and silver in paper markets because they had not yet developed and perfected these algos to manipulate gold and silver prices as well as stock markets in general. Therefore, during Clinton’s tenure, the bankers relied primarily on selling physical gold and silver, and not paper gold and silver, to suppress gold and silver prices. For all intents and purposes, one can substitute the world “sell” for the word “lease” above, because though Central Banks still carry this physical gold on the asset side of their balance sheets as “leased” gold, this gold is now likely forever gone from their vaults and will never return. No sane persons or institutions will now part with their physical gold and physical silver and accept fiat paper currency in return.

 

Thus, though Democrat Obama has been a very banker-friendly President like his predecessor Clinton, gold and silver prices during his tenure have risen, in our opinion, in spite of Democrat Obama, and with a less banker-friendly President in office, the prices of gold and silver would likely be even higher than their present prices.

Today, bankers have to create an illusion of massive gold and silver supply by falsely creating billions of paper ounces of gold and silver in the futures markets that simply do not exist in the physical world, aka the REAL world, because they have no more physical gold and silver to sell into the market to suppress the price of gold (or no more physical gold and silver with which they are willing to part). Thus, they are struggling right now to crush the price of gold and silver at a time when all major global fiat paper currencies are right now at their most fragile point in history on their way to worthlessness. Again, we endorse neither the Republican or Democrat candidate in today’s US elections as we believe both candidates are equally awful choices. We have presented the two charts above merely for your digestion. Interpret the charts as you may.

 

About the author: JS Kim is the founder and Managing Director of SmartKnowledgeU, a fiercely independent investment research & wealth consulting company. His flagship investment newsletter, the Crisis Investment Opportunities newsletter, with a focus on Precious Metals, has yielded +24.87% YTD as of November 1, 2012 versus the +12.86% return of the S&P 500 and the +4.01% return of the Philadelphia Gold & Silver Sector index over the same time period. We are NOT perma gold and silver bulls and exit gold and silver stocks as necessary due to banker manipulation schemes as proven by our signficant outperformance of gold and silver mining stock indexes, both over short time periods and over longer periods of 5 years.

 


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Tue, 11/06/2012 - 14:01 | Link to Comment malek
malek's picture

Correlation is not causation.

Tue, 11/06/2012 - 14:18 | Link to Comment mkhs
mkhs's picture

I agree, but have to ask: what correlation was there?

Tue, 11/06/2012 - 12:33 | Link to Comment SirSnarksalot
SirSnarksalot's picture

Gold is a long-term store of value.  The only way to get the price of gold (in dollars) to go up over the long run is to weaken the dollar.  If we had anything resembling a sound money policy the price of gold would tend to be flat over the long run.  

By this guy's reasoning reducing the deficit is "awful for gold."  Decreasing revenues, increasing deficits, and skyrocketing debt?  "Good for gold."  QE 1 and QE2?  "Good for gold."  Infinite QE?  *Awesome* for gold. By this guy's reasoning any President who wanted to balance the budget, pay off the debt and  stop the fed from printing money would be *horrendous*.  

But if you agree with his view of the world on such things, he's got a a newsletter to sell you.  

Tue, 11/06/2012 - 12:13 | Link to Comment Mad Mohel
Mad Mohel's picture

Willard Mitchell Roomney is going to be fantastic for the barbarous relic. That bitch is going to hit the gas till the wheels fly off. I think he will be able to accomplish in 4 years what it took W and O to do in 12.

Tue, 11/06/2012 - 11:59 | Link to Comment NEOSERF
NEOSERF's picture

Doesn't matter which party is in power or the WH...from here on out $1T+ annual deficits will raise PMs as there is no ability to reign in spending.

Tue, 11/06/2012 - 11:27 | Link to Comment crito
crito's picture

whatever comes from smartknowledgeu lowers the average quality of ZH

Tue, 11/06/2012 - 11:31 | Link to Comment Burticus
Burticus's picture

Mr. Kim always makes sense...and he has the good sense not to endorse the OBAMNEY establishment sock puppets!

BUSHOBAMNEY = A seamless continuum of Fed money "printing", bankster handouts & ZIRP, trillions in deficits & debt, perpetual war & meddling from 900 bases in 130 countries, expanding totalitarian surveillance police state & 1.4 billion rounds of ammo for Dept Fatherland Tyranny, open borders/non-enforcement/amnesty for illegals, competition-stifling fascist/socialist/communist (crony capitalist) economic system, direct unapportioned taxation & oppressive regulation, eternal War on People (terror/drugs/poverty), foreign handouts (poor people in rich country giving money to rich people in poor countries), etc., etc.

Continuation of the central banking enabled Ponzi status quo under an OBAMNEY regime will ensure the complete destruction of the FeRN and the United State economy, meaning it will take an exponentially-increasing number of FeRNs to get real physical gold & silver bullion.

Send a message to our masters' secret vote-counting computers by voting for the only viable opposition to the ruling party, Libertarian candidate Gary Johnson, or staying home.

Tue, 11/06/2012 - 11:15 | Link to Comment TrumpXVI
TrumpXVI's picture

It's got nothing to do with Democrat vs Republican.

It's about massive, unpayable debt issued in fiat/unbacked currencies gobbling up all available collateral.  The only thing viable remaining being hard assets, owned outright with no encumberance.

Tue, 11/06/2012 - 10:45 | Link to Comment moneybots
moneybots's picture

Bear market / Bull market

 

Being in a Bull Market, gold will go up regardless who is President.  Clinton and Obama sre democrats.  One in a gold Bear Market, the other in a gold Bull Market.

Clinton had a Nasdaq bubble, Bush had a housing bubble.  Obama has a deficit bubble.  Change the order of Presidents, the same bubbles still occur in the same order.

Tue, 11/06/2012 - 10:36 | Link to Comment ItsDanger
ItsDanger's picture

Gold is mostly a long term play.  Therefore, it doesnt matter who wins tonight.  The course is already set and neither party can stop it now.

Tue, 11/06/2012 - 10:26 | Link to Comment balz
balz's picture

This is useless stuff. You can't compare the nineties and now, whatever puppet was in office.

Tue, 11/06/2012 - 10:25 | Link to Comment San Diego Gold Bug
San Diego Gold Bug's picture

History is repeating itself.  Keep stacking physical and sit back and watch the tragic comedy unfold.

Tue, 11/06/2012 - 07:53 | Link to Comment CaptainAmerica
CaptainAmerica's picture

The safe bet:  gold and silver go up, my paycheck goes down, a  new president is elected.

Tue, 11/06/2012 - 10:47 | Link to Comment fuu
fuu's picture

Precious metal climbs

Paycheck continues decline

The TOTUS abides

Wed, 11/07/2012 - 11:11 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Your paycheck will only increase if your taxes increase my the same nominal amount.  You are now, and have been for some time, a laundered conduit for transfer of funds. 

If you have not bent over already, you should do so for your own comfort and safety.

Tue, 11/06/2012 - 04:45 | Link to Comment L927
L927's picture

what's the point looking backwards? you can't compare QEs. If Obama will be president again, other QEs are expected and gold will be bought accordingly. Where do you see that in the hyst charts?

Than, yes charts go up down or sideways, one can pretend to see whatever explanation wherever

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