Is Gold a Hedge Against Bad Times?
November 8, 2019
(Betting on bad news?)
Ultimately gold is just a shiny stone. The dollar is just paper.
All markets depend on psychology.
In a crisis, it's hard to predict what gold will do,
but most likely
it will fall as people sell
to cover margin calls.
by Henry Makow PhD
The price of gold is a measure of the psychological state of society.
It moves up whenever there is a whiff of trade war, financial or political instability or any other war. It usually goes in the opposite direction of the market as a whole.
It spiked in August when Trump and China engaged in a tariff tit-for-tat. It has faded recently on "trade optimism." Lately, it has been fixated on this deal.
The gold market is like a baby in a crib. Just jingle some keys and its mood changes immediately. Of course, the Illuminati business media decides what baby will see. They have been juicing the stock market to record highs on trade "optimism."
"Stock Market up big today. A New Record. Enjoy!" Trump tweeted yesterday as if stock prices are the only measure of his performance.
Today, Trump said he had not agreed to lift tariffs. There is no trade deal. The market was more sullen on Friday but gold did not respond.
All other reasons to own gold have been ignored. It doesn't matter that the fiat monetary system is showing signs of strain. The IMF recently warned that global debt has hit $188 trillion, double world GDP.
The Fed has been printing money 24/7 for the last five years. The US national debt has passed 23 trillion. Iran has enough uranium to make an atomic bomb. Trump is being impeached. The market doesn't seem to care about anything but trade with China.
Markets are just psychology. Gold is just another medium of exchange like coupons (fiat currency.) It's a game of scissors, paper, and stone.
If gold is better than coupons, gold miners should just stockpile it and only sell enough to meet expenses.
Gold is considered a hedge against financial collapse, war, and chaos. But it has not performed all that well in these cases. Gold should have gone to the moon during the credit crisis of 2007-2008 but only eeked out a gain of 5% after initially falling.
Kitco writes: "In October 2008 all markets - gold included - fell sharply as the credit markets seized up. At the time gold was being sold as investors sought funding to shore up losses in other markets... Looking at a futures continuation chart, gold fell as low as $681 an ounce on Oct. 24, 2008, but settled at $729.10. It rebounded into the end of 2008, settling at $884.30, up about 5% on the year, being one of the few markets to settle the year with a gain."
While the threat of war does boost gold, it doesn't do all that well after the dust settles. For example, once it became clear that Iraq would be vanquished in 2003, gold sold off.
Gold is really a sap's game. As soon as it goes up, sellers pour in and exchange their bullion or shares for more currency coupons that they deemed worthless in the first place. It has performed miserably compared to bitcoin. With all the money printing, gold should be valued at $3000 an ounce, at a minimum. But it seems to be kept down in order to maintain confidence in the monetary system.
Russia and China are taking a long view. They have been stockpiling gold for years. Central banks are also adding.
CONCLUSION
Ultimately gold is just a shiny stone. The dollar is just paper. All markets depend on psychology.
In a crisis, it's hard to predict what gold will do, but most likely it will fall as people sell to cover margin calls.
Gold is another part of the matrix that keeps us mesmerized. We can't save the world, but we can save our souls by realizing that beyond meeting our material needs, gold and "money" in general are just illusions that enslave us. Real gold is not found in the ground.
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First Comment from Tony B
1. Gold as money is a con.
2. Gold as a "backing" or "reserve" for money is a con.
3. The daily "market price" of gold is arbitrarily set by a handful of people in a few stock exchanges around the world. The price has nothing to do with any real market because there isn't one.
4. Trying to use gold as an exchange medium for ordinary exchanges would be a very time consuming, inaccurate and frustrating return to the barter system which did not survive the industrial revolution.
5. Moving an amount of gold from one nation to another is how the Rothschild cabal created false depressions in one and false booms in the other, resulting always in wars and desperation for millions of people with no means, thus conquering the world by war "loans" of nothing to governments at high, and manipulated even higher, interest with no payments ever made on the principal of the phony debt finally resulting in economic enslavement of most of the world's people.
6. All money is "fiat money" which simply is a way of a government stating just what substance or bookkeeping it allows for money, i.e., what it will accept in tax payments.
7. Every living human needs to take a crash course in true economics, finance and money (definitely NOT college economic courses) or the world will never escape its present enslavement to the financial cabal headquartered in its City of London square mile of the world's most satanic criminality.
Wade said (November 11, 2019):
The article on gold and all responses from your readers miss the point.
Here is the POINT: In 1912 one man put $10,000.00 dollars in paper currency in a mattress for his great grandson to be
delivered to his heir in 2019.
By the time the paper currency was delivered to the heir...That paper currency had lost approximately 97% of the buying power it enjoyed in 1912.
Another man in 1912 took $10,000.00 in cash and converted it to gold at let's say $32.00 dollars an ounce and hid that in his mattress. By the time his heir had the gold delivered to him the price of gold had risen to $1,400.00 an ounce. At $32.00 an ounce the amount of gold delivered to this heir was about 312.5 ounces. Which is now in 2019 worth $437,500.00.
WHICH GREAT GRANDFATHER'S GIFT WOULD YOU RATHER HAVE?
This is the salient point...and the ONLY point I might add where gold is concerned.
The Holy Bible tells us that the new world order satanists will one day get their way. We will have a one world government with the capitol located at Jerusalem. Everyone on earth will be forced to be chipped and nothing can be bought or sold without the mark of the beast. The ONLY medium of exchange will be a debit and credit account built into the chip...which will be totally controlled and administered by the one world banking cartel (illuminatti Satanists).
This is what will happen.
Follow me on this Henry...What if the price of gold were to be allowed to rise to meet inflation back to 1912. And if gold were designated legal tender for all debts. Do the math and think about it.
But even though this totally impossible scenario will never happen. It is a delightful lazy afternoon pipe dream I sometimes enj