Is Gold a Hedge Against Bad Times?

henrymakow.com – Nov 8, 2019

Betting on bad news?

Good news is bad news for gold
Ultimately gold is just a shiny stone. The $US is just paper. All markets depend on a buyer and a seller. 
They all 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 their other losses. 

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. In fact, there is no trade deal but the market has not realized that.
The gold market is like a baby in a crib. Just jingle some keys and its mood will change 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.” Today, Trump implied that this optimism is totally manufactured. There is no trade deal but the market is grasping at straws.

 

Continues …

5 responses to “Is Gold a Hedge Against Bad Times?”

  1. How does one convert gold into food when the shtf? Who would want to buy it? What would it’s value be, and who would decide it’s worth?

    As the author points out, it’s just a shiny stone, and I suspect stones don’t taste very nice.

    When the crash comes, I’d rather have a sack of rice than a sack of gold.

    Only (((simple minds))) are attracted to shiny things.

  2. It is important to note that the “official” gold price is a paper price determined by exchanges of paper and / or computer digits on the Comex futures exchange and London markets through contracts that really have no backing of the metal. In other words ( 1 )most contracts by far cannot meet the delivery option of the real metal if all parties who owned it asked for it, (2 ) the contracts are trading gold at levels that doesn’t exist. It is a Ponzi scheme in part devised to control ( usually down ) the price of gold by creating artificially high levels of gold that simply does not exist thereby driving prices down. Gold is feared by the central bankers as competition against their fiat currencies which they can make from nothing which gives them wealth with hardly any effort. The drop in the gold price in the 2008 – 2009 scenario was a drop in the paper price as many investors and investment firms needed desperately funds from all sources to meet their obligations in the crashing financial markets. In other words basically only unbacked paper gold contracts were traded and not gold itself for the most part.
    It is important to note that currently many of the big banks are purchasing more and more gold. Also a number of countries are calling back their gold from storage sources. This is NOT a scenario where gold is deemed as non important. Basically Gold here is the Bottom Line in maintaining economic equilibrium and stability. As the IMF recently determined Gold to be a Tier 1 Asset.

  3. I would rather have some gold in my possession than everything in the bank, that can make it all disappear.

  4. Response to Barney: Just look at history at the Weimer republic in Germany from 1919 – 1933. The Weimer republic inflated the Mark to unbelievable levels where it wasn’t worth the paper it was printed on. Actually there are cases where this money was used to fuel heaters to heat coffee. People in the cities needed food which the farmers on the outskirts had. The farmers would not take the Mark in exchange for the food. but they definitely did take Gold and silver in an number of forms such as coins and gold watches etc. This all is a proven and well known historical fact.
    Brief course on money: Before money there was barter but barter was not perfect and often broke down. Here’s an example: Person 1 has cows. person 2 has grain. Person 1 needs grain and person 2 needs cows. Fine they can exchange at some level and complete the barter. However if person 1 has both cows and grain he will no longer deal an exchange with person 2 who has grain since person 1 already has grain. This is an example where an intermediate of exchange is used such as Gold and Silver.Person 2 can now buy cows from person 1 in exchange for Gold or Silver. Gold which is rare, cannot be made out of thin air like our currencies are, is durable and lasts forever. Gold as well as Silver have been used as the best intermediate of stable exchange for 1000s of years. and both require time and effort to find ( as they are rare), dig up, and to process to certain weights and purity. They have built in value and are nobodies promise as they speak for themselves as value on hand. Just look at your history. Nations have gone to war over Gold and Silver.

  5. The conclusion of the article is very interesting. Most of conclusion was to the point except this part: “…We can’t save the world, but we can save our souls…”

    This is some saying that would make Satan happy, not the gloom and doom parts! Sure materialism is bad we all know it, but without saving the world, how can we save our children and future generations from being affected by the same materialism? Proper selflessness would be to die in the way of saving the world.

    Any monotheist that doubt God has an active ongoing plan to save the world should double check his beliefs for holes.