Yesterday the Bank of England announced another round of quantitative easing, this time spending $79.1 billion on government bonds. On the chart below you can see the effects previous rounds of quantitative easing have had on the price of gold in U.S. dollars and pounds sterling. As monetary authorities in the United States and the United Kingdom have poured money on their economies, the price of gold in their currencies has skyrocketed. The continued debasement of fiat currencies has been a boon for gold investors, but a terrible strain on savers, diluting the value of their nest eggs.
