Gold has seen an impressive price spike in the past 18 months, and if you are wondering what the cause is, you’ll find almost everyone has a different theory.

That said, certain factors in historic gold rallies tend to be ignored. For example, the mainstream financial media often hyper focuses on stimulus measures by the Federal Reserve as the cause, but I would remind people that the most recent upward trend in gold started while the Fed was tightening liquidity and raising interest rates, not stimulating.

Also, many analysts suggest that precious metals absorb investment cash flows when equities are sliding. Yet, for now, stocks have been rallying for the past year as gold prices also trend upward. So, what is the mainstream missing here?



Read more…