Friday, April 26, 2013

Growth in Public Debt vs Change in Gold Price


This compares growth in the Debt Held by the Public to growth in the price of gold.  Although it isn't a perfect correlation, I assert that deficit spending causes inflation, which influences the gold price.  Reductions in the rate of growth of the public debt cause a decrease in the growth of the gold price.

That would partially explain the decrease in the price of gold.

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