The correlation between gold and the national debt was clear for 13 years. It made perfect sense in a free market. You can't print more gold. It is a relatively scarce metal that has represented wealth for centuries. Fiat currency can be printed at will by corrupt bankers and politicians. Every paper currency ever created eventually reached its intrinsic value of ZERO, as human beings always take the easy way in attempting to create wealth.
So what happened in 2013? The national debt has gone from $16.5 trillion to $18 trillion, but the price of gold has dropped from $1,750 to $1,200. Is gold no longer a store of value? Is creating $2.5 billion per day in new debt now the path to long term prosperity and wealth accumulation? If gold is no longer insurance against the corrupt machinations of bankers and politicians, then why are China and Russia accumulating as much physical gold as they can get their hands on?
There seems to be only one logical explanation for the abrupt break in the correlation between gold and the national debt. The free market has been manipulated to artificially suppress the price of gold. A rising gold price reveals the inflationary monetary policies of the Fed and the outrageous spending of politicians. The Fed and their owners on Wall Street, with the approval of their captured political hacks in D.C., are using the paper markets, derivatives, and lack of market transparency to keep the price of gold from rising.
The bankers are winning for now. Can they suppress the price of gold forever? Can they prop up the stockmarket forever? Does history provide even one example of a fiat currency that did not ultimately reach its true intrinsic value?
Are you going to bet on Grandma Yellen or gold?