Gold spot prices and election year impact of the 2012 elections:

Gold spot prices and election year gold price chart below got me thinking about the influence of Presidential choice on gold spot prices and election year.

See Hunting for Gold spot prices: current gold spot price election year for the current bullion or spot price. But as you'll see the current gold price flattening isn't everything. Gold prices are really sensitive to the emotions of politics and economic news. This is especially true in the gold rush roller coaster of election years...

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Gold prices and election cycles (Click to zoom)[/caption]

As for Presidential election years and gold prices

It's not too surprising that gold prices fluctuate around the four year election cycle and especially the 2008 and 2012 cycles. Elections are when government leaders out do themselves in making government policy and economic news look good to the average citizen for obvious election influencing reasons. Notice that it didn't matter which party was in office either. Gold spot prices and election year jumps afterwards were present.

These politically driven four year news spin cycles affect gold prices in part because the gold commodity market is driven by future price speculation* based on current economic events, that so called "good economic news" makes gold prices sink, until the reality of the current economic situation sinks in like a bad after election hangover. At that time we usually see the up, up and away escalation in gold pricing.

So, we can probably expect gold to continue its climb in 2013-14 unless real and significant progress is made in the world's economic situation. That's not very likely to happen based on current debt levels and a variety of consumer demographic shifts. No matter who wins this election, the economic deficit situation is cooked in and will take over driving gold prices again by next January.

Gold rush season 3 reality check - Your election year gold prices will vary

As Discovery channel's massively successful reality show "Gold Rush" has shown viewers over and over, reality may not always be as it appears on the surface. Gold prices and the real gold rush are no different. In reality the last few inter election cycles have been a period of massive government spending in addition to the policy of monetary "easing." Monetary easing is a fun phrase meaning "bailout cash from future financed thin air." In turn, gold which has been seen as a safe haven from government currency debasement or inflation for thousands of years. In turn this activity has led to a huge run up in prices. A current question has been "will the gold bubble burst?" The answer lies in finding when the monetary giants get back in control and stop printing currency out of nothing. Until that happens gold prices will stay up and up as shown on the 10 year gold price chart on this page.

My two cents, or rather my two ounces of gold...

What does this observation mean to you the gold prospector? Currently gold has cooled about 14% from the $1900 high of September 2011. That's a pretty typical investor profit capture situation. The question we must ask is what's gold's next move? If gold goes higher you have begun the adventure of a lifetime, even if there's a flattening or small drop like this year you still have a big advantage. In fact you have an advantage over gold investors and coin collectors, check out the gold nugget hunter's pricing advantage.

To see what nugget hunter's look forward to when considering gold prices, look at the page I mentioned earlier for the nugget price multiplier for why gold prospecting is such a cool thing to do. If you think the $1900.00 per ounce price was good, you should try more than doubling it by digging up a good sized nugget or two!

Good Prospecting,

Prospector Jess
P.S. Remember to bookmark, link & share the current gold price page for tip on Gold Nugget Prices.

P.P.S. *Gold future speculation is required in the gold trading market, because new gold is not yet out of the ground and that fact leads to a huge mining investment risk as to the estimated amount of gold & precious metals to be possibly recovered. Gold Rush star Todd Hoffman on Discovery Channel's "Gold Rush" reality TV has demonstrated this effect over and over when he speculates how much gold his team will recover in his - "next Gold Rush season 3." He now claims next years gold recovery will be much greater than this year's $100,000.00 worth, right? Meanwhile Discovery channel takes all the hidden investor's risk ... ;) LOL!