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Gold – the Hedge Against Government

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I have stated countless time that gold is NOT the hedge against inflation, hyperinflation, the anti-fiat antagonist against the dollar, or manipulation that keeps gold down; paper gold suppresses the price, and anything of the sort that amounts to promotions or excuses. Gold has followed the deflationary trend in commodities, if you haven’t paid attention to oil, and money supply is not a one-to-one relationship with inflation, for this is a global economy driven by CONFIDENCE. All of that nonsense is pure BULLSHIT, to state it bluntly.

Every single one of those sales promotions are meaningless and most manipulations in metals have been to the upside to entice the unsuspecting to rush in and buy every single high before they crash it. This has been going on since the 1970s. I knew the Hunt brothers in the early 1970s. They became a household name when the promoters exposed them to for convincing people that they would see $100 silver, so buy now at $50.

All of these promotions existed for the 19-year decline from 1980 to 1999. They roll them out to dupe people into buying every rally and these same people pretend analysts are selling gold, which is a conflict of interest. Come on. Today there are more regulations to protect the public when buying a used car than there is for gold.

I am not selling gold. There is ALWAYS a time to BUY and there will be a time to SELL. Sorry, I am a trader first and foremost. Gold is the hedge against government. The low in terms of dollars is still probably not in place. Keep in mind that we may see a major rally in the dollar and that will help gold decline in dollars.


NEVERTHELESS, that is the TRADING view. Gold from the hedging perspective may have lost its movability. This will have some dampening effect in price long-term. However, if we are talking about trading, then there may be better opportunities than gold. Perhaps the way to make gold movable again is for everyone to start wearing “bling-bling” as they call it, perhaps 2-ounce wedding rings are in order.

If we are talking about hedging, then yes you should have some common gold coins or jewelry. Where to store them is another whole problem. So we are not talking about trading in this context. They are moving rapidly to shutdown paper currency for they see this as the only way to prevent a bank meltdown. Their solution is to collect all the taxes they ever dreamed of to prevent anyone from buying or selling without government approval, using terrorism and drug dealers as the prime excuse. Of course, how are the police going to make money? When I landed in Poland, big signs at the airport declared it was illegal to carry ANYTHING worth more than €10,000. This is going to be a very questionable future we face.

I remain skeptical that these people can hold on to power, for we may be facing a serious political meltdown come 2016 into 2017. Gold is the hedge against government, not fiat or inflation. In this context, coins of common date will be the best rather than bars. Of course, you may not be able to leave your home.

We cannot stop what is coming; we have to crash and burn. We are in a battle for our freedom and that of our children. This is the only reason I have not run off to a beach and retired. What about my own posterity? While the crash and burn is inevitable, perhaps we can reduce the pain if we push back when the time comes and prevent the complete loss of all rights, privileges, and immunities, which America once embodied in our Constitution, securing the right of citizens to travel from one state to another was already protected by the Privileges and Immunities clause.