America 2020: Impact of the US Election on Metals and Mining

#election #metals #mining #energy #jobs #PresidentTrump


With less than a wk to go before the US Presidential election, there is growing speculation as to what a Joe Biden or President Trump win might mean for metals prices and the mining industry overall.

Gold prices have performed well over the course of Y 2020 and for the duration of the COVID-19 chaos, and analysts suggest that gold will continue to perform well regardless of who wins the Presidency.

A Haywood Securities analysts noted on 23 October that “While there are many arguments over who will be the next US president, one thing most analysts appear to agree on is that the price of gold will be higher no matter who is in office.” 

Earlier this year, gold broke the 2,000oz market, though has pulled back to around 1,900oz.

The Haywood analysts like Shayne and I have made a Bull case for gold, suggesting that the US economy and the Fed’s ‘money printing’ stimulus measures have keep it at historically high marks.

Similarly, analysts at UBS have noted that investment demand for gold has kept prices high, and that they have noted cash flowing into bars, coins, and ETFs.

“In [the 1-H of 2020], investment demand for gold, which consists of demand for bars and coins and inflows into gold exchange-traded funds (ETFs), accounted for nearly 56% of total demand. This ranks as the highest level over the last 2 decades and exceeds the previous record of nearly 46% in 2009.”

2020’s historic rise in gold has supported exploration in the sector.

Christopher Galbraith, an analyst at S&P Global Market Intelligence noted that gold exploration budgets have remained relatively stable this year, while budgets for other metals dropped. “These strong indicators for near-term gold exploration, coupled with a still-strong gold price that is likely to set a new floor above estimated reserves prices, support the likelihood of continued strong gold exploration in 2021.”

Insider sources at The Biden Campaign have noted that “A Biden administration would emphasize green energy, and in order to get more solar panels, you need more raw materials,” signaling Joe Biden’s support to boost domestic production of Key metals for batteries, solar panels, and other products which are necessary for the global energy transition.

Both candidates are holding firm in their support to establish domestic supply chains for lithium, copper, rare earths, nickel, and other strategic materials, especially those rare earths that are imported from China.

Sources from the Biden campaign confirm that he agrees with President Trump’s orders to encourage domestic mining, but that he opposes his anti-China rhetoric.

Part of Biden’s campaign platform has included a $2-T budget for EV (electric vehicle) infrastructure and other green projects which help to support decarbonization and climate change efforts. Thus, undermining the crude oil and nat gas industries and destroying over 10,000,000 vital jobs.

Mr. Biden’s policy advisers have met with coal industry executives and have noted a general understanding of the contribution of coal to communities within the US, however it is clear that A Trump Victory will be better for the longevity of America’s coal industry.

Mr. Biden’s policy is to completely cut fossil fuels from the US power mix by Y 2035.

A Biden victory will certainly accelerate the decline of US thermal coal, crude oil and nat gas, where America leads the world. Thus, not making and keeping America Great.

President Trump is the choice of America’s energy industry’s 10,000,000 workers.

Have a healthy day, Keep the Faith!

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