Gold hit a four month high Monday pending the ECB's expected but long-awaited QE program.
Talk about looking for a four leaf clover in a field where uncertainty and indecision reign, the wished-for-magical elixir of QE's been on the minds of too many for too long.
The euro recently hit an 11-year low against the rising U.S. dollar. Printing money debases the currency being printed. If one writes favorably about gold he or she is by MSM standards a gold bug. But those who vilify the yellow stuff are mostly fiat paper shills.
So the gauntlet has been tossed. Priced in euros gold is now back to prices not seen since 2013, having risen 3.5% since the Swiss central bank performed its monetary tap dance on currency markets last week.
Low bond yields are part of what goes around comes around. Low bond yields lower the holding costs associated with gold helping wipe out one its critics favorite points--gold doesn't yield anything while one is holding it.
To the less MSM-annointed members strolling around the planet that seems a curious thought given the current yields on checking and savings accounts, notwithstanding taxes and government lies about the absence of inflation.
In 2011 gold topped out at a record $1,921.17 an ounce before falling just under 30% in 2013 to the cheers of the fiat money crowd. Last year it eked out a small rise.
The bigger message from the Swiss bank heist is one fiat money shills could come to hate--central banks are not what many believed, fortresses of stability.
While for those who choose the easy road, targeting greedy individuals and corporations for widening the income inequality gap, central banks with their easy money madness might be the real villains hiding in the economic clover.
Make no mistake. If Euro-style QE, even in its most-watered down form, happens, there will be money to be made. But it won't be made by those at the bottom of the economic pit. That's not the way central banking works. It's only the way they talk.
So be careful what you're holding.
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