Joe Biden is very close to claiming the presidency, according to the Associated Press he currently holds 264 Electoral College votes out of the 270 required to win the White House.
While Donald Trump casts doubt on the legitimacy of mail in ballots, the financial markets have accepted a Biden victory as the probable outcome.
The US Dollar Spot Index fell nearly 1% today, while the euro rallied 0.85% vs. the dollar.
Post election night bitcoin, gold and silver have been the big winners. Bitcoin has rallied +9%, silver +4% and gold +3%.
The Republicans will likely keep control of the Senate, while the Democrats are projected to retain control of Congress. This outcome potentially limits the ability for a Biden presidency to push through a larger stimulus bill.
However, with the US unemployment level at 7.9% and coronavirus cases spiking, the Senate and Congress will need to get checks in the mail sooner than later, while the Fed will continue to flood the system with money.
In this loose fiscal and monetary environment we believe gold, silver and bitcoin will all perform very well relative to cash and bonds.
Gold mining stocks are one of the most attractive ways to play this trade, as they have significantly underperformed the gold price since 2008.
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