Yesterday gold surged to a new all-time high of $1588. When Bernanke speculated about further QE, gold surpassed its previous record of $1577. It kept going up as Ron Paul owned Bernanke. It’s in new record territory of the $1590s this morning.
Paul asked Bernanke if gold was money. After a long pause and appearing like a deer in headlights, Bernanke simply said “No.” Paul followed that up by asking if gold is not money, then why central banks hold it in their reserves. Bernanke responded that it was a “long term tradition,” but refused to elaborate.
While Bernanke may want everybody to believe gold isn’t money, it’s not working. With gold prices at new highs and on pace for 11 consecutive years of annual gains, it is clear that the marketplace has sided with over 5,000 years of history that suggest gold is in fact money, rather than with a central banker who believes money can be created with a printing press.