The price of gold jumped more than $30 an ounce today after the US Federal Reserve announced a third round of monetary stimulus called quantitative easing.
QE has been a massive boon for gold. When the Fed floods markets with cheap money, gold’s allure as a storer of wealth and an inflation hedge is burnished. Loose monetary policy also weakens the dollar, further boosting the yellow metal.
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Wow,so you can see how printing money weakens the dollar, so gold rises comparatively? Guess so.
ReplyDeleteJust wait. As both U.S. and Euro central banks print more money, this is going to really spike. I've read predictions of $5,000 oz. gold and $150 oz. silver.
ReplyDelete