There are probably no more catalysts around live silver price than what we have had in the last decade. This has almost been a perfect storm for gold price rises, even though adjusted values don’t reflect the record highs attained in the previous.
Even so, the fundamentals of the economy remain the same. Support for gold prices rising will be in place for some while, though it is debatable and uncertain for how long.
Federal Reserve and Gold Prices
Perhaps the most important catalyst is the Federal Reserve’s actions. It has done more to drive investors and interest towards gold than anything else. That is based on Chairman Ben Bernanke’s commitment that he will continue printing money, buying bonds and implementing quantitative easing. These are all basically the same thing and can have the same outcomes.
It leads to the devaluation and perpetuation of an unsustainable level of debt.
Even if quantitativeeasing could be stopped instantly, the consequences of Fed actions will continue for years to come.
The combination of high debt levels and the debasement of the U.S. Dollar is one of the most important factors in the continuing rise in gold price.
The low interest rate environment is another important factor that has helped to support gold’s value.
It is not far behind the Federal Reserve’s actions regarding why gold’s value is rising. This is again attributable to Ben Bernanke. He has stated that he will not raise rates as long as the economy remains weak. The problem is that, contrary to many economic reports, the economy remains a disaster and Bernanke won’t raise interest rates soon.
So long as it is, gold will continue to receive support.