Posted on October 3, 2015 by Martin Armstrong
ANSWER: No. The only impact that war will have on gold is confined to either prolonged inflation or the uncertainty of the victor — the hedge against government survival. War by itself is a non-event. Gold will rise ONLY when there is uncertainty because the currency of the government will not survive a loss or a win if it is Pyrrhic victory.
Gold rose in value expressed within the local currency of any nation where its future existence came into question in both World War I and World War II. Capital will also attempt to move away from wherever the crisis might be. So war in Europe and the dollar rises. The Cuban Middle Crisis and the dollar declined as capital fled to Europe. Just because there is war somewhere, which there often is, has no impact upon gold unless your country is impacted with respect to confidence.
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