Joe Biden will be sworn in today as the 46th head of state of the United States. Under which U.S. presidents has the price of gold risen the most?
Joe Biden becomes US president
This Wednesday evening, Joe Biden will be inaugurated as President of the United States of America. The Trump successor takes the post as number 46 in the list of US heads of state. What’s more, Biden is the ninth U.S. president since Richard Nixon declared the gold standard over on Aug. 15, 1971 (The day Nixon dismantled the world financial system). Since that time, the price of gold has risen rapidly.
Debt Growth and Gold Price
However, the overriding bull market was repeatedly interrupted by periods of steadily falling prices. A decisive role in the rise of gold was played by the virtually exploding national debt from the 1970s onward. After that, deficit spending was the answer to all economic problems. In other words, simply taking out new loans when revenues were insufficient to finance planned projects.
As a result, paper currencies were systematically diluted and their purchasing power steadily decreased. This led to periods of high inflation, such as in the period up to 1980, when the price of gold reached an all-time high that would not be reached again until 2006. Question: Under which U.S. president has the gold price risen the most since the gold price was released? Here is an overview:
POTUS and Gold Price
|Goldpreis-Entwicklung in den Amtszeiten der US-Präsidenten seit 1969|
|US-President||Party||Term in office||Gold price at inauguration*||Changed in term||30-day balance**|
|Richard Nixon||Rep.||20.01.69 - 09.08.74||$42,20||+265,52%||+1,01%|
|Gerald Ford||Rep.||09.08.74 - 20.01.77||$154,25||-13,71%||+0,81%|
|Jimmy Carter||Dem.||20.01.77 - 20.01.81||$133,10||+322,24%||+2,63%|
|Ronald Reagan||Rep.||20.01.81 - 20.01.89||$562,00||-27,85%||-8,99%|
|George Bush||Rep.||20.01.89 - 20.01.93||$405,50||-18,87%||-5,70%|
|Bill Clinton||Dem.||20.01.93 - 20.01.01||$329,00||-19,48%||+0,55%|
|George W. Bush||Rep.||20.01.01 - 20.01.09||$264,90||+222,10%||-3,27%|
|Barack Obama||Dem.||20.01.09 - 20.01.17||$853,25||+40,70%||+15,91%|
|Donald Trump||Rep.||20.01.17 - 20.01.21||$1.200,55||+54,34%||+3,06%|
|*per ounce, London P.M.; gold price on 01/20/2021: $1.853,00|
|**Gold price development in the first 30 days after inauguration|
Gold Price friendly
So who is the gold king among US presidents. Donald Trump’s legacy includes a gold price increase of 54 percent. But that’s only good enough for fourth place. Under Jimmy Carter, the price of gold rose by 322 percent. At the time, he was in office during the difficult phase of stagflation (weak economic development plus high inflation). Looking at the first 30 days in office, Barack Obama tops the table of the most gold-friendly U.S. presidents.
Times of crisis
Obama had only been in office a month when the price of the golden metal was already 16 percent higher. A few months earlier, Lehman Brothers had gone bankrupt and the financial sector was on the brink of collapse. George W. Bush was his predecessor. He governed the U.S. during the attacks on the World Trade Center (Sept. 11, 2001) and in the midst of the world financial crisis of 2008. Also noteworthy: During Ronald Reagan’s term in office, gold performed the weakest. This is true both for the entire period in office (-27%) and for the first 30 days (-9%).
Translated with www.DeepL.com/Translator