Gold
- Thread starter LAW DAWG
- Start date
LAW DAWG
TSU LOVE
During the 2013 government shut-down, instigated by Ted Cruze, I wondered was his real motive more about driving up the price of gold for selfish reasons rather than his stated objections to the Affordable Care Act.
I guess I'll never know the answer to that question, but here is what an AI search says about how shut,-downs affect the price of gold:
Yes, the price of gold tends to go up (or at least hold strong) during U.S. government shutdowns because shutdowns create economic uncertainty and risk, making gold a preferred safe-haven asset for investors seeking stability, with recent shutdowns often coinciding with record highs for gold due to broader market fears, geopolitical tensions, and weaker economic data. While short-term fluctuations happen, the general trend is upward as investors flee volatile equities and dollar concerns, boosting gold's appeal.
Why Gold Rallies During Shutdowns
Economic Uncertainty: Shutdowns signal fiscal instability, making investors nervous about the economy, which drives them to gold.
Safe-Haven Demand: Gold is a traditional safe haven, preserving value when other assets (like stocks) might fall due to political gridlock.
Dollar Weakness: Shutdowns can weaken the U.S. dollar, making gold (priced in dollars) cheaper for foreign buyers and boosting its price.
Delayed Data: Shutdowns delay critical economic reports (like jobs data), clouding the outlook for the Federal Reserve and adding to market anxiety.
Historical Examples
October 2025 Shutdown: Gold surged, hitting record highs (over $4,000/ounce) as the shutdown began, fueled by economic concerns and global trade issues.
General Trend: Analysis of past shutdowns shows gold often holds its ground or climbs, with increases often seen both during and immediately after the event.
Key Takeaway
Government shutdowns generally increase market fear, and investors flock to gold for safety, pushing its price higher as a reliable store of value amidst uncertainty.
I guess I'll never know the answer to that question, but here is what an AI search says about how shut,-downs affect the price of gold:
Yes, the price of gold tends to go up (or at least hold strong) during U.S. government shutdowns because shutdowns create economic uncertainty and risk, making gold a preferred safe-haven asset for investors seeking stability, with recent shutdowns often coinciding with record highs for gold due to broader market fears, geopolitical tensions, and weaker economic data. While short-term fluctuations happen, the general trend is upward as investors flee volatile equities and dollar concerns, boosting gold's appeal.
Why Gold Rallies During Shutdowns
Economic Uncertainty: Shutdowns signal fiscal instability, making investors nervous about the economy, which drives them to gold.
Safe-Haven Demand: Gold is a traditional safe haven, preserving value when other assets (like stocks) might fall due to political gridlock.
Dollar Weakness: Shutdowns can weaken the U.S. dollar, making gold (priced in dollars) cheaper for foreign buyers and boosting its price.
Delayed Data: Shutdowns delay critical economic reports (like jobs data), clouding the outlook for the Federal Reserve and adding to market anxiety.
Historical Examples
October 2025 Shutdown: Gold surged, hitting record highs (over $4,000/ounce) as the shutdown began, fueled by economic concerns and global trade issues.
General Trend: Analysis of past shutdowns shows gold often holds its ground or climbs, with increases often seen both during and immediately after the event.
Key Takeaway
Government shutdowns generally increase market fear, and investors flock to gold for safety, pushing its price higher as a reliable store of value amidst uncertainty.
CEE DOG
Well-Known Member
Jan 30th is coming..... follow the money
LAW DAWG
TSU LOVE
I have one relative in gold. I'm a little jealous .
Up +3100 from 10 years ago.
Up +2100 from 5 years ago.
Up +1600 from 18 months ago.
I'll be ready for the GOP shutdown game next time.
Those are some greedy ass people.
Peep their game:
Callously cut taxes for the rich at the expense of everybody else, play dumb and create economic uncertainty, shut down the government to drive up the price of precious metals...etc..etc.
What a game, the rich are fed on both ends. A strong dollar, the rich eat good. A weak dollar, the rich eat good.
Up +3100 from 10 years ago.
Up +2100 from 5 years ago.
Up +1600 from 18 months ago.
I'll be ready for the GOP shutdown game next time.
Those are some greedy ass people.
Peep their game:
Callously cut taxes for the rich at the expense of everybody else, play dumb and create economic uncertainty, shut down the government to drive up the price of precious metals...etc..etc.
What a game, the rich are fed on both ends. A strong dollar, the rich eat good. A weak dollar, the rich eat good.