8 November 2016 will be a destiny day for Americans when they cast their votes for their new President. Whether its Hillary Clinton or Donald Trump, it will be a tight race for sure. With so much uncertainties, will gold price surge with the new US President?
Most people assume that the popular Hillary Clinton will prevail and win the election hands down. But the American election voting system is not so straightforward. The candidate can win more votes but still lose the race. Why is this so? This is because of the complex US voting system – the Electoral College.
Under this profound system, Americans are actually not voting for the nominees directly. They are in fact voting for a group of electors representing their states. Each state has equal numbers of Congressman and Senators. The bigger the state, the more electors. At the state level, it is a winner takes all game. So the key is actually winning more electors, and not more voters.
This system is obviously very different in Singapore, whereby the number of votes determine the winner.
Thus, it is important to note that because of this US complex voting system, the result on 8 November 2016 will be a surprise for sure. So don’t write off Donald Trump’s chances yet. For all we know, it may be another US version of Brexit.
When Brexit occurred in the middle of this year, it really set gold price on fire. At one point, gold price surged by 30% from the low of December 2015 due to the shock result of the referendum. Brexit created a lot of uncertainties and fear over the destiny of UK’s economy, and investors hate uncertainties most. Because of this, investors fled for safety and ignited a price explosion for gold.
Will gold price surge again this time round? I am unable to confirm because I cannot predict the future. But as wealth builder, it does not matter if my forecast is right or wrong. Of more important is whether you are prepared to make money out of this market volatility. Are you even ready to rock with the market if gold price really did surge?
The next question Singaporeans may be asking is where to buy gold bullion in Singapore?
Do you want to miss the boat again?
Start accumulating physical gold now when the price is still reasonable. Don’t wait until media reports of gold price surge then you enter the market. By then, the chances of capital appreciation will be minimal.
In Singapore, BullionStar’s Bullion Savings Programs allow you to trade gold and silver online at any point of time. At very low price premium and spread, BullionStar allows you to convert grams in the Bullion Savings Programs (BSPs) to 100g PAMP Cast Bars and 15kg Heraeus Bars. Unlike other bullion savings programs (BSPs) are fully backed by physical precious metals.
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SG Wealth Builder