Is Gold The Fed's Worst Nightmare?
The SPDR Gold Shares made a new all time high this afternoon after the Federal Reserve Bank said that they would keep the fed funds rate at zero percent. The Federal Reserve Bank also said that they would do whatever they need to in order to keep the markets higher. These comments launched the market indexes and gold sharply higher. When gold rallies it is telling the world that the central banks are diluting their currencies by printing more money. Spot gold is now flirting with the $1300.00 level. The Federal Reserve Bank no longer shares M3 money supply with the public. Therefore, the public no longer knows exactly how much money is in circulation at any one time. However, the increase in gold is a pretty good barometer of how much money is being created.