On July 19th, 2013, Ben Bernanke said during the Senate Banking Committee hearing, “Nobody understands gold prices and I don’t pretend to either.” This generalization has caused a bit of backlash from financial experts, and raises the question whether anyone can really understand the price of gold? Let’s take a look. Experts agree that the price of gold typically ties closely with the supply of money. In other words, gold follows global liquidity; when gold supply doesn’t change, but more money is chasing the gold, the gold price goes up. Said another way: supply and demand drive … [Read more...]