What Ben Bernanke hid at the Senate Testimony 
Perhaps, Ben Bernanke is trying to score a point here. He may want to say that paper gold prices reducing is a sign that gold demand and investor anxiety is depleting, which means economy is on the path to growth. Is not that tantamount to hiding of facts? I think so.
Nobody understands gold prices and I don’t really pretend to understand them either.” Bernanke has been excessively frank as he testified before the US Senate Banking Committee on Thursday.
Now, if Ben Bernanke who has been instrumental in taking gold to $1900 highs by announcing trillions of Dollars in printing, if Bernanke who sits above 13,452,810.551 fine troy ounces of gold, he being the US Federal reserve Chairman and the custodian of gold reserves held by the Fed, cannot understand gold prices, who else would?
One may argue that you do not have to be a mechanic to drive a vehicle; you just have to be a good driver. And Ben Bernanke looks like he is. Let us leave it there and see what else Ben Bernanke said to the Senate Banking Committee on gold.
“Gold is an unusual asset. It’s an asset that people hold as a sort of disaster insurance,” he continued to add.
“One reason gold prices are lower is people are less concerned about extreme outcomes, particularly negative outcomes, and therefore they feel less need for whatever protection gold affords,” he said.
Well, this point proves another thing, that he does not understand people or their investment habits.
Now, that I would suggest is pretty much dangerous; it is okay if the US Fed Chairman does not understand gold prices; but it is inappropriate for the Fed Chairman to forget the fact (I will not say he is ignorant of the fact) that gold has been in backwardation for some time in many years.
The spot or near month contract of gold is trading higher than far-month futures. Now, for that to understand one need not be the Chairman of US Federal Reserve, a nineteen-age who dabbles in futures would understand it; it also means gold physical demand is huge.
This means, Ben Bernanke does not understand gold prices; he does not understand people or their aspirations or rising physical demand and what they imply. How ridiculous; all the while admitting that “people hold (gold) as a sort of disaster insurance!”
Perhaps, Ben Bernanke is trying to score a point here. He may want to say that paper gold prices or futures prices reducing is a sign that gold demand and investor anxiety is depleting, which means economy is on the path to growth. Is not that tantamount to hiding of facts? I think so.
Paper gold market is not the only market for gold.
Perhaps, Ben Bernanke is trying to score a point here. He may want to say that paper gold prices reducing is a sign that gold demand and investor anxiety is depleting, which means economy is on the path to growth. Is not that tantamount to hiding of facts? I think so.
Nobody understands gold prices and I don’t really pretend to understand them either.” Bernanke has been excessively frank as he testified before the US Senate Banking Committee on Thursday.
Now, if Ben Bernanke who has been instrumental in taking gold to $1900 highs by announcing trillions of Dollars in printing, if Bernanke who sits above 13,452,810.551 fine troy ounces of gold, he being the US Federal reserve Chairman and the custodian of gold reserves held by the Fed, cannot understand gold prices, who else would?
One may argue that you do not have to be a mechanic to drive a vehicle; you just have to be a good driver. And Ben Bernanke looks like he is. Let us leave it there and see what else Ben Bernanke said to the Senate Banking Committee on gold.
“Gold is an unusual asset. It’s an asset that people hold as a sort of disaster insurance,” he continued to add.
“One reason gold prices are lower is people are less concerned about extreme outcomes, particularly negative outcomes, and therefore they feel less need for whatever protection gold affords,” he said.
Well, this point proves another thing, that he does not understand people or their investment habits.
Now, that I would suggest is pretty much dangerous; it is okay if the US Fed Chairman does not understand gold prices; but it is inappropriate for the Fed Chairman to forget the fact (I will not say he is ignorant of the fact) that gold has been in backwardation for some time in many years.
The spot or near month contract of gold is trading higher than far-month futures. Now, for that to understand one need not be the Chairman of US Federal Reserve, a nineteen-age who dabbles in futures would understand it; it also means gold physical demand is huge.
This means, Ben Bernanke does not understand gold prices; he does not understand people or their aspirations or rising physical demand and what they imply. How ridiculous; all the while admitting that “people hold (gold) as a sort of disaster insurance!”
Perhaps, Ben Bernanke is trying to score a point here. He may want to say that paper gold prices or futures prices reducing is a sign that gold demand and investor anxiety is depleting, which means economy is on the path to growth. Is not that tantamount to hiding of facts? I think so.
Paper gold market is not the only market for gold.
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