Decision 2024 is in its final stages. So, who is the winner?
Money Metals' Midweek Memo host Mike Maharrey says that no matter who ends up occupying the White House next year (At this point it looks like Trump), gold and silver are already the big winners.
In this episode of the podcast, Mike argues that the practical impact of the presidential election will be less significant than many people imagine because the federal system itself is the problem as much as the people running it. That means a lot of things will continue on the same trajectory. He goes on to highlight gold and silver as the big winners in 2024 using some of the third-quarter data.
You might be surprised to learn that silver and gold are the best-performing assets so far this year.
Having recorded before the votes were all in, Mike opens the show with his 2024 presidential election prediction.
"No matter who wins, in four years the federal government will be bigger, more intrusive, and deeper in debt, and you will have fewer liberties. Now, we can debate whether one candidate might be better than the other, but neither one of them is going to be 'good' – at least not if you are in favor of a constitutional system with a limited central government."
Mike focuses on the economic ramifications of the election, noting that the pattern is for deficits to expand and the debt to grow no matter who is in office.
He also points out the danger of anybody having too much power - even people you like. He quotes George Mason to drive home this point.
“Those who have power in their hands will not give it up while they can retain it. On the contrary, we know they will always, when they can, rather increase it.”
Mike warns that even if you like the short-term benefits you get from expanding political power when your team is in charge, it’s always setting a precedent for more and more and more government power in the future - and it will eventually be in the hands of people who don’t care about your liberty.
As far as the election itself, Mike says, "I’ll tell ya this: nothing reveals how broken the constitutional system is more than a presidential election."
"If the system was remotely like the one the founding generation envisioned, it wouldn’t matter who occupied the Oval Office. It really wouldn’t. The president’s job is primarily supposed to be executing the laws passed by Congress. He or she is not supposed to be creating policy. Presidents aren’t supposed to be running the economy, creating jobs, lowering gas prices, fixing inflation – all of these things people seem to think the president does."
Mike goes on to give a brief overview of the government the Constitution was intended to create - a federal government with very limited power. Most power was meant to be exercised at the state and local levels, as James Madison outlined in Federalist #45. The system has been flipped on its head.
"I’ve been saying for a long time that if you care about the Constitution, getting involved in D.C. politics is an absolute waste of time."
That all being said - it is what it is, and Mike argues you should be prepared for the inevitable.
"I can’t control who is in the White House. I can’t stop them from running massive deficits and blowing up more debt. I can’t stop the money creation necessary to support the borrowing and spending. I can’t lower the inevitable price inflation that you get from this fiscal and monetary malfeasance. But I can take steps to protect my wealth. As far as I’m concerned, Decision 2024 is all about gold and silver. They are going to win no matter who gets the most votes in this election."
In fact, gold and silver are already big winners in 2024. They are the best-performing assets this year, outgaining stocks, bonds, and commodities in general.
Gold has hit record highs 39 times in 2024. But even with these high prices, gold demand set a third-quarter record.
Mike highlights some of the gold demand data.
And what about silver?
"It’s widely seen as a laggard, despite actually outperforming gold in percentage terms. I think the biggest reason silver is viewed as underperforming is because it is nowhere near its record high. I don’t think this is an unfair criticism. But it’s important to remember that historically, silver has lagged behind gold in the early stages of a bull market. But it eventually makes up the difference very quickly."
Mike goes on to cover some of the supply and demand dynamics in the silver market, the significance of the gold-silver ratio, and some technical analysis that seems to indicate we are on the cusp of a big breakout.
Mike closes the show with a call to action.
"By the time you hear this, it will be too late to vote. But it won’t be too late to get real money – gold and silver. I have a feeling you’re going to need it no matter who wins this election. Now is a great time to call 800-800-1865 and talk with a money metals' precious metals specialist."
About the Author
Mike Maharrey is a journalist and market analyst for MoneyMetals.com with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
