Gold investors putting their eggs in the QE basket
By Geoff Candy
When the US launched its first quantitative easing programme at the end of 2008, it is fair to say the world was in a fairly parlous state and in the four months following that significant liquidity injection gold rose around 36%.
When QE2 was announced gold rose again but, by not nearly as much. As ETF Securities points out in a new note, by the end of the second round of QE the gold price rose by 11% to US$1,500oz.