No one creates a bull market for gold like Federal Reserve Chairman Ben Bernanke. It’s not just that his policies that have lifted the price of the yellow metal to record highs — his mere words can spur it higher.
Testifying February 2 before the House Budget Committee of the U.S. Congress, Bernanke warned there would be a sudden fiscal crisis unless Washington slashed the budget deficit.
Investors reacted immediately, driving up the price of gold as a safe haven should the greenback fall.
SPDR Gold Shares (GLD, quote) rose $1.49 to $171.05. It ended the day up 12.54% for 2012, and up 31.29% over the last 52 weeks of trading. As detailed previously on www.emergingmoney.com, uber investors such as John Paulson, Jim Rogers and George Soros are taking major positions in gold.
Even Midas would be impressed by the Chairman. After all, the king of Phrygia actually had to touch things to turn them into gold.