Gold Is a Hedge Against Bad Government Decisions

Gold last traded at $1,808 an ounce. Silver at $23.32 an ounce.

NEWS SUMMARY: Precious metal prices rebounded Wednesday on bargain-hunting and a weaker dollar. U.S. stocks traded mostly lower as investors digested the economic impact of rising jobless claims and record high Covid-19 hospitalizations.

 Dillian/Bloomberg---"Investors don't really have a handle on what gold is or what it represents....Gold is a hedge on government authorities making poor economic choices. Inflation is usually the result of those poor decisions, but people confuse cause and effect here. Gold is a hedge on policy makers screwing up, and there has been a lot of screwing up in the last 20 years. Gold has significantly outperformed stocks this century, gaining about 555% versus 79% for the MSCI All-Country World Index of stocks and 146% for the S&P 500 Index. This is a direct result of significantly looser financial conditions, and no constraints on monetary and fiscal policy. From a financial perspective, the global economy is in a much worse place than 20 years ago, and there is no evidence that things are going to improve."