There are many factors that affect the price of gold but what most people don't know is that it has a lot to do with monetary policy and the policymaking of central bankers and other appointed and unelected bureaucrats.
Trend Price of Gold
Since the recession, which most libertarians predicted by the way, the price of gold has been going up. It's ridiculous how high the price of gold has been going and how low paper currency has becoming. The Federal Reserve has had no choice but to keep on printing money, increasing the money supply, for funding billions of dollars of bailouts and for quantitative easing and as they keep on doing this, the price of gold will keep on going up.
The same is happening in the eurozone. All they've been doing recently is buying each other's debt and bailing each other out with even more debt and even more printing of money. What's worse, they keep interest rates artificially too low. It's crazy, really. Interest rates are obviously one of the greatest indicators in the market and to manipulate it distorts the whole economy completely. It's so scary how a small group of unelected people can have this kind of power. Many countries in Europe have lost sovereignty because of the European Union.
This is just the market starting to reject fiat currency. This rise in the price of gold is just the market correcting the price back and restoring the value of gold as money.
Here's an interesting video of Ron Paul lecturing Bernanke on gold as money. There's a funny bit at the end where Ron Paul asks if Bernanke thinks gold is money and he even says that the only reason central banks still keep gold is "tradition". It's the most non-sensical answer I've ever heard and it's almost laughable if not for it being so immoral:
The Federal Reserve has had no choice but to keep on printing money, increasing the money supply, for funding billions of dollars of bailouts and for quantitative easing and as they keep on doing this, the price of gold will keep on going up. get redirected here
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