According to Ron Paul, whoever wins the election in November, gold will be the real victor.
The elder statesman of the libertarian movement and former Republican presidential candidate has remained apathetic about which major presidential candidate claims victory next month. However, he remains convinced that uncertainty will result no matter the outcome of the election, as he told CNBC in an interview:
“Politically speaking, there is going to be a lot more uncertainty and that may go into the markets. If people are depending on political stability to get the market going I don’t think it’s going to work out.”
Chaos is good for assets like gold
During times of high uncertainty, traditional markets tend to fare poorly, while assets like gold tend to fare well. Paul’s prediction of strong gold prices in the near future indicates that neither Hillary Clinton nor Donald Trump will make the economy better off, and will instead do the opposite. During the run-up to the UK’s Brexit vote, leftist billionaire George Soros backed gold as a hedge against the coming economic uncertainty.
Meanwhile, former Federal Reserve Chairman Alan Greenspan urged a return to the gold standard in order to combat what he sees as upcoming hyperinflation. If his predictions are correct, gold may very well see soaring prices in the near future.
Bitcoin is becoming “digital gold” in uncertain times
While gold remains the standard hedge against poor central bank performance, Bitcoin has recently joined as a prime contender. The distributed digital currency tracked gold’s price prior to Brexit, meaning that it too has become a hedge against uncertain economic times.
Unlike gold, however, Bitcoin can be more easily used for regular financial transactions. Sweden’s largest gold dealer famously ran into trouble when its bank accounts were abruptly closed. Bitcoin is not subject to such a vulnerability, as demonstrated by Uber’s switch to Bitcoin debit cards and other prepaid cards in the face of a government effort to make them cease operations in Buenos Aires.