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It’s election season, and along with that, we are having a challenging time with rising inflation across all areas of needs and wants.  Because of the economic challenges and uncertainty, there has been a major uptick everywhere encouraging you to take your money, and retirement monies and purchase gold!

The reason why people are saying this is because of the sensationalism that gold is a financial safe haven, a protection from the rampant printing of the American dollar.  The news would lead you to believe that the world is coming to an end, and that all your hard work and savings is going to be eroded with the election of the next political candidate. 

FEAR!  It is coming to a head right now!  Many people are fearing that our current (and future) economy will collapse and the US dollar will become worthless. “After all,” they say, “the dollar is no longer backed by gold, therefore it has no intrinsic value.” They go on to suggest (or demand) that gold is the safest place to store our hard-earned cash. The purchasing power of a dollar keeps on dropping, but the price of an ounce of gold has risen. If I am worried about the inflationary effects of printing money, owning gold seems like a great alternative to that.

This is the storyline today for many.  And yes, we hear questions and desires toward “investing” in gold at almost every Life Institute Stewardship Lifestyle Seminar that we do.  But the question is…should I put my money into gold?  Should I put my retirement savings out of the market and into precious metals like gold…especially because of this being an election year with much uncertainty?

Today we will discuss “if I should buy gold because it is an election season”



The Bible and Gold

Gold is mentioned or referenced in the Bible over 400 times, symbolizing wealth, purity, and divine glory. It is often associated with kingship, worship, and the adornment of sacred objects, reflecting its significance in ancient cultures and religious contexts.

  • The Tabernacle and Temple: Gold is extensively used in the construction and adornment of the Tabernacle in Exodus and the Temple in 1 Kings, symbolizing the holiness and glory of God’s dwelling place among His people.
  • The Gifts of the Magi: In Matthew 2:11, gold is one of the gifts presented by the Magi to the infant Jesus, signifying His royal status and divine nature.
  • The New Jerusalem: In Revelation 21:18-21, gold is described as a prominent element of the New Jerusalem, symbolizing its purity, beauty, and eternal value in the kingdom of God.

History of Gold

Historically, gold was used in the minting of coins, which was actually used as currency for purchasing items. Gold was also used in jewelry, more often for those that were wealthy. Symbolically, gold represents wealth, and we have seen this as true since as early as 3000BC.

 

Is the USA on the “Gold Standard?”

First, let’s define what the Gold Standard is.

The gold standard is a monetary system where a country’s currency is directly linked to a fixed quantity of gold. It served as a basis for monetary exchange, ensuring stability and confidence in the value of currency until its abandonment in the 20th century.

The USA was on the gold standard from 1879 to 1934, when it was partially repealed by President Franklin D. Roosevelt. In 1971, Nixon completely pulled the USA off the gold standard by suspending the convertibility of the US dollar into gold. He did this to allow the government to curb inflation and fund the government.

 

Different Ways to Invest in Gold

  • Physical Ownership 
    • Gold coins
    • Gold bullion/bars (Costco – $100-200M monthly sold!)
    • Gold jewelry
  • Indirect Ownership (more volatile)
    • Gold mutual funds (typically own gold companies more that gold itself)
    • Gold ETFs
    • Gold companies (mining companies) – be careful because they can go out of business before Gold ever hits Zero. 
    • Gold futures

 

Does Gold Preserve Wealth? Is it a Safe Haven?

First, what are you expecting gold to save you from? What are you concerned about? 

If you are concerned about a complete and utter economic collapse, no one needs gold. They need food, water, clothing, shelter!

If you are concerned about inflation, it could be. But it depends on your timing. Gold is volatile! It goes up and down. 

Instead of investing in gold, one of the best things you could invest in is US companies! One of the best inflation hedges is to own companies that produce things that people actually need and use. 

We view gold just like we view bitcoin. You can store value in either. But the value will change dramatically based on the given economic situation.

For those who distrust our government and economy, and are convinced that God is going to rain hellfire on America, please know that you will not be able to avoid the financial consequences by simply owning gold. To that, we would say that you are putting your faith in the wrong place.

 

Will gold be valuable during an economic collapse?

Let’s look at two modern examples of the currency used during an economic challenge or collapse. 

  • Post Civil War South – The confederate dollar became completely worthless! People traded crops and resources in order to survive. 
  • Post Katrina New Orleans – What people really needed was food, clean water, generators, gasoline, and dry clothes. People weren’t looking for gold, they just needed to survive.

 

Is Gold really an ‘Investment’ at all? What is it worth?

Gold Price in USD per Troy Ounce for the last 50 years (Bullion By Post)

Gold vs Stocks Long-term (Top Foreign Stocks)

It really depends on your timeline and when you choose to invest.

 

 Is investing in Gold a way of protecting my investments in financially tumultuous times?

Gold is incredibly difficult to predict. It is not a sure bet like gold companies and other people make it out to be. If the economy does go down, people need food, water, clothing, shelter, and energy. You can’t eat or wear gold bars. 

Consider gold as a fun hobby, but it’s not a reliably consistent long term investment strategy.

 

Stewardship Application

In the pursuit of financial security, it’s tempting to place our trust in tangible assets like gold. However, while gold may offer temporary stability, true wealth transcends material possessions. As believers in Christ, we are called to seek first the kingdom of God and trust in His provision (Matthew 6:33). While prudent financial planning is very important, our ultimate security, even in these election times, rests in God’s unfailing love and provision. So, as we navigate the complexities of financial stewardship, let’s anchor our hope not in gold, but in the One who holds our future in His hands.

 

 

Next Steps

 

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