This is not political, but it could be economically practical. The gold price spiked and the dollar weakened in the hours following Donald Trump’s unexpected turnaround triumph in the US presidential race.
In the UK alone, the price of gold soared by the most since the Brexit vote as it became clear Mr. Trump was on course for victory and investors searched for safe havens. The dollar price surged by almost 5% to $1,337.38 an ounce, or £1065 for British buyers.
If you happen to have an unwanted gold Hublot—or better still, a Rolex—lying around gathering dust, this could be a good time to offload it.
Jewelers are beginning to spin-up their cash for gold businesses as it becomes cheaper to buy scrap than bullion priced in dollars, according to sources.
The gold price is likely to remain strong, business analysts predict. Concern over Trump’s approach to free trade could throw the global system into temporary chaos which will support high gold prices.
While the polls were pointing to a tight race between Trump and his Democratic rival Hillary Clinton, financial markets had in recent days started to price in a Democratic victory, sending global equities and the dollar sharply higher.
Hillary Clinton was generally considered the better choice for financial markets in the short term, because she is seen as representing the status quo for investors, and is viewed as more open to international trade than her rival.
“Gold’s jump shows the shock hitting financial markets world-wide,” explained Adrian Ash, head of research at Bullionvault.