Ben Bernanke: ‘Gold Is Not Money’

July 18, 2011 4:33 am

We have written about Gold statistics and Gold turning into a currency before. We have also written about the Nixon shock – we spotted this today:

“Paul: “When you wake up in the morning do you care about the price of gold?”

Bernanke: “I pay attention to the price of gold. I think it reflects a lot of things. It reflects global uncertainties. I think the reason people hold gold is as protection against what we call tail risks, really, really bad outcomes. And to the extent that the last few years have made people more worried about the potential of a major crisis they have gold as a protection.” (Editor’s note: Gold has been steadily rising for the past ten years.)

Paul: “Do you think gold is money?”

Bernanke: (after a long awkward pause) “No, it’s not money, it’s a precious metal”. ”

Statistics Source: GoldandSilverBlog

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