Contact us
CALL US NOW 1-888-GOLD-160

The Politicos Trading Gold Stocks

  by    0   12

When members of Congress aren’t passing laws, holding committee meetings, or more cynically fundraising endless dollars, some of them choose to pass the time by trading stocks. And for whatever reason, keen insight or perhaps insider trading, members of Congress tend to beat the market.

A report by the website, Unusual Whales, shows that in 2023, Congress beat the market once again, with Democrats doing better at trading stocks than Republicans. And just because politicians in Washington tend to love fiat currency and hate gold, doesn’t mean that they’re averse to trying to make money from gold and other precious metals.

In fact, there are members of Congress who are actively trading stocks related to precious metals, such as shares in gold-mining companies. While not all investments are public, Congress members have to report some financial transactions due to the STOCK Act and transactions can be found online, including from the website, Capitol Trades.

Here is a table of the Congress members who in 2023 or later traded any of these gold and precious metal-related stocks or ETFs. The companies examined are SSR Mining; Sibanye Stillwater; Osiko Gold; B2Gold; Pan American Silver; Royal Gold; Wheaton Precious Metals; Newmont; Agnico; Barrick Gold Corp; and the SPDR S&P Metals Mining ETF. And here’s how much the stock changed in the approximate week following the transaction with data from MarketWatch. (Historical data is sometimes reported weekly and may not be from the exact date of transaction). The final column indicates whether the member appears to have timed their transaction correctly such as selling before a decline or buying before an increase.

Table 1. Congress members trades of precious metal-related securities

One takeaway is that members of Congress look like they’re timing the short-term market fluctuations well. It’s hard to say conclusively since we don’t know the member’s overall investment strategies or the tax implications and so forth. But most of the time the members appear to sell before declines or buy before increases.

It also does not look like transactions of precious metal stocks are timed according to the Federal Reserve’s changing interest rates. The Federal Reserve changed rates four times in 2023 but Congressional transactions are not bunched around them.

But the frequent stock trading of members of Congress, including precious metal stocks does raise a question. Congress members might be happy with volatile fiat currencies and stock market investments, especially because they perform strangely well, but wouldn’t it be better for American workers, families, and investors if our economy were based around a more stable store of value and medium of exchange?

Download SchiffGold's Gold vs GLD EFT's Free Guide

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

CPI vs Rate Cuts: The Fed’s Mission Impossible

With a hot CPI report casting a shadow of doubt on the likelihood of a June interest rate cut, all eyes are on the Fed. But they’ve caught themselves in a “damned if they do, damned if they don’t” moment for the economy — and the news for gold is good regardless. 


The Educational Gap in Economics

It’s no secret that the American public is wildly ignorant of many issues that are central to the success of our nation. Just a generation ago it would have been unthinkable that less than half of the American population could recognize all three branches of government. America is in most cases far less educated about its government […]


Central Banks Are Buying the Gold Top

In investing, “Buy low, sell high” is among the most well-known sayings, and generally, it’s good advice. But with gold still holding near its historic all-time highs, central banks led by China are bucking the classic adage and smash-buying more, buying the top to fortify themselves against a global monetary and financial blow-up.


The Passive Investor Problem

When John Bogle died in 2019, people around the world mourned. Bogle created the Vanguard Group and made the index fund mainstream. Index funds are investment vehicles that invest in a class of investments as a whole, rather than trying to predict what specific stocks or securities will do best. So an investor could invest in an […]


Student Loan Inflation, Here it Goes Again

As the Democratic Party has shifted away from its traditional base of working-class and middle-class Americans, to an increased reliance on college professors, students, and highly educated but low-paid professions, such as social workers, a new policy has risen to prominence: student loan forgiveness. 


Comments are closed.

Call Now