The political reasons to own gold are simple. Everyone should own gold! It does not matter if you are progressive or conservative, libertarian or socialist, the reasons to own gold are the same. Concerns for inflation, deflation, banking crisis, terrorist threats, stock market turmoil and portfolio diversification have typically been reasons why people own gold.
Gold has been around for thousands of years. It has stood the test of time when currencies and governments have failed, and believe me, every “fiat” currency has failed at some point in time. I have read that the average fiat currency life cycle is somewhere between 70 and 80 years. That means that the dollar is about halfway through its life time; since Nixon took us off the gold standard in 1971.
You own gold today to protect yourself from the central banks. The Federal Reserve is printing money at an unsustainable rate. In fact in a speech in Rhode Island earlier this year Bernanke himself said that it was unsustainable. Currencies cannot stand up to this kind of intentional devaluation. It is only a matter of time before this no sense Fed policy catches up with us.
It doesn’t matter if we have a republican or a democratic president or congress. The Fed policy is still the same; print more money! This enslaves us all to debt as we need to borrow more in order to keep up with long-term inflation, because the dollars we earn today cannot buy as much as they did years ago.
At this point in time we are on a path of no return. Jim Rickards, Senior Managing Director for Market Intelligence at Omnis, Inc., said that no combination of taxation or growth can cover the debts of our nation. What that means is that it doesn’t matter who wins the house, senate or presidency. The Fed policy will still be the same: print money. For this reason alone everyone should own gold. Don’t get caught up in politics, watch the money machine. As the Fed prints more money the dollar will lose value and gold will continue to rise. Gold should be used as a protection vehicle for your assets, especially gold coins.