Can’t Make it Friday, the World’s Coming to an End — How’s Your Schedule Look for Monday?

Friday, 13 June 2014
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Published in Gold Investing
Poor President Obama. Right after he promised the American people we were packing up the tanks and the M16s, and bringing American forces home from Afghanistan, wouldn't you know that Al Quaeda-influenced forces would start a civil war in Iraq. What’s a president to do — fire Press Secretary Jay Carney? Tell US armed forces that all leave is cancelled? Call a special session of Congress? Here we go again. The world’s at war.


By the way, did we mention that gold posted a two-week high, as well as its first weekly increase two weeks in a row since April? It closed at $1,277 per ounce today, up $4.00 from yesterday’s close.

Should we laugh at the President’s naïveté? Or should we pity all those who've been throwing cash at the Dow? Neither, really. The President has a job to do — part of which is public relations. So when he assured the American people that we’d be sending no more ground troops to Iraq (despite a call for help from that country), he thought he was giving the American people what they want, a world without a huge commitment of American troops overseas.

Those who recommend gold are dismissed by investment community pundits as “survivalists” or religious zealots…

In all fairness to the President then, we’re not at war — at least, not yet.

You may wonder what’s the point of mentioning gold in the same breath we mention the jihadist assault on Iraq? In his column for the online magazine Slate, Reihan Salan argues that President Bush should have heeded National Security Adviser Brent Scowcroft in his first administration, who counseled GWB to stay put in Iraq. “Though Scowcroft was confident that the US could succeed in destroying Saddam’s regime, he was also confident that military action would be expensive and bloody, and that it ‘very likely would have to be followed by a large-scale, long-term military occupation.’”

Well here’s the Scowcroft-Gold parallel in a nutshell. Scowcroft suffered the fate of Cassandra in Greek myths — she was burdened with the curse of Apollo — never to be believed when she told the truth.

Those of us who recommend gold more often than not suffer this same fate. We’re dismissed by investment community pundits as “survivalists” or religious zealots. This is plain silliness. You might as well dismiss homeowner’s insurance as survivalist propaganda.
Wars are not going to go away, because there are always those who have a stake at keeping war going. In times of war, people rely on commodities — particularly gold — as safe-haven investments.

War plays havoc with the markets. It expands our budget. It causes political leaders to raise taxes. And it inflates our currency. Doesn't it make sense then to hold on to some physical gold at times like this?

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Trevor Gerszt

Trevor Gerszt has been passionate about gold since childhood. Growing up in South Africa, the world’s second largest gold producer, Gerszt spent his youth collecting gold coins. Surrounded by a family of experienced coin collectors, he gained valuable insight about the precious metal.