Bernanke Puzzled by Gold Rally

As a student of the Great Depression, I seriously doubt Mr. Bernanke is "puzzled" by the surge in gold when the cameras are turned off. One cannot ascend to the position of Chairman without an understanding of gold within the monetary system. The fiat currency valuation is all about confidence. Gold is now acting as the dominant global and transitional currency as the existing fiat system begins to wobble.

Federal Reserve Chairman Ben Bernanke says he’s a bit puzzled by surging gold prices. The 30% rally from a year ago, on top of gains in previous years, might be interpreted as a loud signal from markets that big inflation pressures are building in the U.S. Gold is seen by many investors as a hedge against inflation risk.

Source: blogs.wsj.com