Collectively, the world’s Central Banks have put more than $10 trillion into the financial system since 2008. To put that number into perspective, it’s equal to roughly 15% of global GDP.
Despite this rampant money printing, the price of Gold has in fact fallen against every major world currency since 2011.
In a time in which every major central bank is expanding its balance sheet through money printing, Gold has fallen against every major currency.
Indeed, in the US, the Federal Reserve is now expanding its balance sheet at a pace of nearly $1 trillion per year. The Fed balance sheet is already at $3.8 trillion and will likely surpass $4 trillion in early 2014.
Any yet, the price of Gold, denominated in US Dollars is lower today than it was when back in early 2011, when the Fed’s balance sheet was just $2.4 trillion.
Does this make sense? Gold falling in value at a time when balance sheets expanded by multiple TRILLION dollars?
Make no mistake, gold is not dead. Not by any means. The day is coming when its price will soar again.
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