Thursday, June 22, 2017

Gold and Political Risk

There's a room where the light won't find you
Holding hands while the wall come tumbling down
When they do, I'll be right behind you
--Tears for Fears

As these pages have observed, gold is a bet on disorder. This article notes that this disorder usually stems from political causes. Governments, in their quest to get bigger and to acquire power, inevitably look toward acquiring resources via the monetary system.

In the U.S., much of this government action began with the initiation of the Federal Reserve in 1913.

1913 $2.50 PCGS MS64 CAC

Gold is a way for citizens to keep their resources from being robbed by government action. It is insurance against political risk.

position in gold

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