WHY DOES GOLD HEDGE AGAINST INSTABILITY?

Many many people see and feel the profound instability in the global economy.

Even if you're part of the one percent - in which case you're personally stable, you probably understand the instability even if you can't feel it.

The structural problem is that the value of money is deteriorating at a terrifying clip as the cost of housing, food, clean water, health care, and education continue to spiral out of control all the while the Central Banks of the World keep real rates deeply negative thus providing a huge return on risk assets for the rich all the while destroying the value of the savings of the middle class and the poor.

This can never end.  The central banks can not raise rates because the bi-product of their rate policy is spiraling out of control debt.

Besides, they now see their mission as supporting the risk markets for the wealthy.

Thas is the definition of SOCIALISM FOR THE RICH.

It makes me laugh//cry when commentators decry the call for Socialsim.  What the hell system do they think a Central Bank represents?

But the question here is why is Gold a hedge against this instability.

The answer is that gold serves as an alternate currency the can not be printed/created at the will of a third party.  The supply is steady and limited.  And once in the possession of the private citizen it is totally under the control of that citizen.  It cannot be debased or devalued by decree.  It does not tarnish.  It can't be hacked.  It is traded in every market in the world and readily convertible into any and every currency.  It t leaves no electronic footprint.

And most important of all to stability - it has a 5000 year record of holding its value over time.  Try to think of something else with that track record.