Armstrong: Gold – The Hedge Against Government

Posted by Martin Armstrong - Armstrong Economics

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While government may see gold as the barbaric relic of the past monetary history, it still will serve as a hedge against them from the private individual side. Our biggest problem is the Hunt for Money. They are of the opinion it is not their fiscal mismanagement that is causing the instability, it is that we have money they see as their’s. This is the historical classic battle between Public and Private I have warned about. You may not be able to travel with gold any more as they close the corral and try to slaughter us for money. But history still demonstrates they will collapse. It is then when gold will provide its more historic base purpose as the hedge against government. It is not a hedge against inflation nor will it track with the increase in money supply. It is driven by confidence and the lack thereof. When the latter raises it head, then it is time for gold to rise. Keep in mind I would recommend real gold coins of bullion value common dates compared to bullion. At least then you can claim you are a coin collector. That worked before at least in the 1930s.