"The price of gold performs well under either political party, but has typically climbed higher under Democrats. Since Richard Nixon, the president that cut the final link to a gold standard and ended the trading of gold at a fixed price of $35 an ounce, gold has surged nearly 360 percent over the terms of Democrats. In comparison, the precious metal has jumped 121 percent over the terms of Republicans notes Eric McWhinnie of Wall St. Cheat Sheet..
"A recent note from HSBC also suggests a correlation between Democratic control of the White House and Congress, and higher gold prices. The bank explains, 'The heaviest Democratic majorities in 1975-1979 coincide with a powerful and prolonged rally in gold prices from below $200 per ounce to more than $800 per ounce. In the early 1980s, Democratic majorities were reduced and gold prices eased. Gold declined, however, from 1983 to January 1985, a period when the Democrat majority increased. Gold also moved higher from January 1985 to October 1987, a period when Democrats lost seats but still held a majority,' according to Mineweb.
"Under President Obama's first term, gold reached its highest nominal price in history at approximately $1,920 an ounce. This was a lofty level for gold, but it was still below the inflation-adjusted record of $2,300 achieved under Jimmy Carter. However, with Obama being chosen for a second term, history suggests that it may not be too long before gold breaks this record as well. ... Gold often performs even better during a president's second term, regardless of the party. George Bush Jr. takes the cake with an 89 percent surge in gold prices during his second term, compared to a 25 percent increase in his first term. Ronald Reagan and Bill Clinton both saw gold prices decline in their first terms, but the precious metal rebounded in their second terms with gains of 28 percent and 5 percent, respectively."
"A recent note from HSBC also suggests a correlation between Democratic control of the White House and Congress, and higher gold prices. The bank explains, 'The heaviest Democratic majorities in 1975-1979 coincide with a powerful and prolonged rally in gold prices from below $200 per ounce to more than $800 per ounce. In the early 1980s, Democratic majorities were reduced and gold prices eased. Gold declined, however, from 1983 to January 1985, a period when the Democrat majority increased. Gold also moved higher from January 1985 to October 1987, a period when Democrats lost seats but still held a majority,' according to Mineweb.
"Under President Obama's first term, gold reached its highest nominal price in history at approximately $1,920 an ounce. This was a lofty level for gold, but it was still below the inflation-adjusted record of $2,300 achieved under Jimmy Carter. However, with Obama being chosen for a second term, history suggests that it may not be too long before gold breaks this record as well. ... Gold often performs even better during a president's second term, regardless of the party. George Bush Jr. takes the cake with an 89 percent surge in gold prices during his second term, compared to a 25 percent increase in his first term. Ronald Reagan and Bill Clinton both saw gold prices decline in their first terms, but the precious metal rebounded in their second terms with gains of 28 percent and 5 percent, respectively."
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