Next week’s presidential election in the United States is casting long shadows ahead, influencing not only the political landscape but also the demand for precious metals.
An analysis by the world’s leading bullion marketplace, BullionVault, reveals that sales of new gold and silver coins from the US Mint are a remarkable 289% higher in real terms during the terms of Democratic presidents compared to those of Republican presidents.
“It’s an open secret in the precious metals industry,” explains Adrian Ash, Director of Research at BullionVault. “Americans buy far more gold and silver coins when there’s a Democrat in the White House. That’s why many precious-metals adverts in the USA target conservative messages and use right-wing figures to promote bullion coins. The political pattern in US gold and silver coin demand says that Republican voters seek to protect their wealth and savings against the economic policies of liberal-left administrations.”
Rather than choosing the most cost-effective way to invest however, “this pattern only affects US coin demand,” says Ash. “It isn’t shown by US flows into lower-cost vaulted bullion, and it’s completely reversed in US-listed gold ETFs. What’s more, going into Election 2024, Democratic states now lead gold-related search volumes online, accounting for 8 of the top 10 according to our analysis of Google Trends data.
“This suggests that inflation fears and wider economic worries are crossing party lines ahead of the election. It also echoes the rise in US gun ownership among Democrat voters. Because personal safety, whether financial or physical, is becoming a bipartisan issue.”
BullionVault’s research report – including charts, data and analysis of economic and gold price performance under Republican vs. Democrat Presidents, plus an embeddable map of current ‘gold price’ search trends in each US state – is available here:
Election 2024: Do Only Republicans Invest in Gold and Silver?
