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What Gold Will Do After the Election Seven Reasons Gold Will Go Up

It's Election Day. Time to go out and vote.

Or better yet, tell them you are going to vote — and go to a movie instead. It will be more productive.

From where I sit, the election is a coin toss, both in terms of who will win and what they will do with the power when they get there. I don't hear anyone saying they will pay down the deficit or cut the size of government.

It's easier to predict where the market will go. I expect the S&P 500 will rally based on more political certainty of the next four years, then sell off as the market turns its attention to more political deadlock and the looming fiscal cliff.

As you can see by this chart of the S&P 500, we are still well above 100- and 200-day moving averages.

There is also a MACD crossover well above the zero line. The last time this happened, the market sold off about 10%.

But what of gold? What will the election do for the malleable metal?

Call In the Experts

The seers at Deutsche Bank called for gold to go past $2,200 an ounce next year. They think it will go up due to excessive money printing by those fools at the central bank.

The Deutsche Bankers wrote: "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time."

The first-string guessers at Credit Suisse didn't stick their necks out quite so far. They said gold will go up 7% to $1,840 in 2013.

The chief Nostradamus at HSBC raised his gold price outlook for 2013 to $1,850.

I value their wisdom for what I paid for it, which was nothing. My grandmother would say, "What do you expect? You get what you pay for” — and she would be right.

In a like mind, I too am here to offer my wit and wisdom absolutely gratis to all and sundry.

Just the Facts, Ma'am

Perhaps some facts will make you feel better...

Gold is now trading at $1,682/oz after a big sell-off from the 30-day high of $1,775. I think we can all agree those numbers are true (at least, I don't have any reason to disbelieve them).

It is where gold will be next year that's in dispute.

For the record, I believe gold will go much higher from here. The bubble hasn't even started to inflate. When the run happens — just like with dot-com stocks two years ago and housing five years ago — the prices people pay will seem surreal.

We aren't even close to that; $5,000 gold would not shock me.

But I expect you won't take my word for it, nor the experts' at the leading investment banks. After all, it was these guys who got us here.