In the last five years the price of an ounce of gold has increased 131%. Easy monetary policies and the downgrade of many sovereign debt ratings, including that of the U.S., have contributed to the high demand for the safe-haven precious metal.
Since May 16, in the lead up to September’s Federal Reserve announcement of QE infinity, the market pushed the price of gold up by 12.6%. The price of the yellow metal is consolidating and could break out at any moment. Gold should be a component of all investment portfolios today as a hedge against profligate fiscal and monetary policy.