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Is Gold a Hedge Against Bad Times?

November 8, 2019


(Betting on bad news?) 

Good news is bad news for gold. 

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. 


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.


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.

Scruples - the game of moral dillemas

Comments for "Is Gold a Hedge Against Bad Times? "

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.

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

Larry C said (November 10, 2019):

Gold is not just another shiny stone. Gold has important physical properties that give it critical commercial and industrial uses. It also has an international market value.

It is not to be confused with barter; you are not “bartering” when you buy or sell it. We have traded financial honesty and stability with the speed and convenience of debt-based paper. It is “working,” if you don’t mind the loss of privacy, financial stability, and a peaceful world, free of the banking monopoly and their shenanigans.

Why are the rich hoarding gold? Because they’re anticipating the deterioration and final collapse of paper money. Are they hoarding anything else? We haven’t heard about it. They’re not hoarding paper money or credit cards. They may be “hoarding” art pieces in their homes, but in their vaults – it’s all gold. Are you going to call them stupid, because gold is just another shiny metal, or it’s all just psychological?

Joseph K said (November 9, 2019):

Barter has the huge disadvantage that the goods are not "fungible". Almost any farmer can tell you, it results in getting ripped off - the horse has a defect that becomes apparent only after you've owned her a month, the bushel of grain is part rotten inside. So barter is useful mainly between friends, or within a tribe.

Copper was widely used as a medium of exchange by the ancient Semites. Even today silver jewelry is a main repository of wealth for the average Hindu. These metals might be preferable to gold. They're fungible, and useful because of their strength, malleability and corrosion resistance.

Robert K said (November 9, 2019):

Were people unable to develop their economic resources before they discovered gold? It’s an idiotic proposition—about as idiotic as the assertion often voiced that we could carry on without money, including so-called fiat money.

Money is a marvelous invention allowing for complex relations, but few grasp its nature as accountancy. If the books were kept properly—i.e., in balance—we could be living in heaven on earth, but the obsession with personal survival undermines the social cohesion necessary to wrest control from the bankers and reconfigure the bookkeeping procedures on realistic beneficial principles.

SP said (November 9, 2019):

To me, everything that is on this Earth was given to us by God to be used, so it has its rightly purpose. I think God put gold on this planet because of man’s ability to use ‘money’ (in any shape or form) to enslave and oppress people. It is the one creation that liberates, protects, and rewards man financially for infinity. It is God’s money to the man. Everything has its purpose, that’s my point. Nature has its purpose to connect us emotionally and spiritually. Natural resources have its purpose to uplift men to reach their full potential.

As to the gold value, the time will come when it reflects its true fundamental value. Any bubble economy can be perpetuated for years and years, but blow up in a matter of weeks or months. Then people wish they had things like gold.

Essel said (November 9, 2019):

Already, the most classical moral theology considers it is a duty, not to adore - in the true sense of the word - money and material goods in themselves as a divinity, but to provide reasonably and temperately for the needs of human life on earth, especially in troubled times as is the case now (at least for clairvoyants).

Moreover, the knowledge of the Adversary's methods, widely developed on this site, easily shows that the prices (of everything, and in particular precious metals) are "administered" according to an occult plane and especially the dates of major so-called fortuitous economic events. Under these conditions, anyone who seeks to explain them, like mass media commentators, by economic considerations and the blind statistical analysis of the past is led to conclude that there is an anomy where there is calculation and to depart logically from the possession of the PM.

It is likely (one can no longer say) that the current pull-back of gold is only a trick to make the last adepts let go. It will not last very long.
Finally, it can be noted that if we look at gold prices versus fiduciary currencies over a long period of time, we can clearly conclude that gold is an insurance (and not a speculative instrument for uninitiated) without equivalent.

In short, yes, the first precaution to take in these troubled times is to be in a state of permanent grace (specialy confession) so as not to be surprised by the "thief" who comes unexpectedly, but we are currently living on earth and we must live (not gorge ourselves).

Peter said (November 9, 2019):

How much better we would be if the time and attention given to mandatory Holocaust studies were instead given over to how the financial system really works, as outlined by Tony B above.

"A spokeswoman for the Board of Studies said the Holocaust is now mandatory in the national curriculum history overview and will be taught in classrooms from 2014."

I would start with this book on the history of debt by David Graeber.

( this link seems legit - - perhaps the author is not in it for the money, if so we owe him a debt of gratitude )

Andrew said (November 8, 2019):

J P Morgan said, “Gold Is Money, Everything Else Is Credit” while testifying before Congress in 1912 shortly before his death.

The perfect money for a while was America's US Dollar, a note back by gold until 1972. To bolster confidence in the US Dollar afterward, the global elite, in 1973 persuaded Saudi Arabia and all other major oil-producing nations to demand payment for their oil in US Dollars. Iraq, Iran, the Gulf states, etc. all fell in line which elevated the value of the US Dollars to the status of the PETRODOLLAR.

And that's why we call oil BLACK GOLD; alternatively, it is an informal term for oil or petroleum—black because of its appearance when it comes out of the ground, and gold because it made everyone involved in the oil industry rich...

The main reason for the US Military in the Middle East is to create enough chaos to keep most of the oil in the ground to not only prop up the price of oil, but also the US Dollar.

Adam M said (November 8, 2019):

Gold is not money but can be used as money as all other commodities.

To be precise, because gold has intrinsic value, therefore, it is wealth and asset.

Gold will solve nothing and we can survive without gold as we don't need banks to survive and be happy.

The most powerful weapons that the money changer/Bankers whom Jesus labeled as the synagogue of Satan have been using to enslave the entire humanity are Usury and gold.

The science of money is:

Money Exist-Not in nature, but by the decree of Law. It is a pure human invention. Therefore, anything can be used as Money. It is an abstract but unfortunately believed by most of the humankind as tangible.

Henry Makow received his Ph.D. in English Literature from the University of Toronto in 1982. He welcomes your comments at