Bernanke explaining why gold prices have fallen

A Senator asked Bernanke about about gold. It was comical listening to intelligent people trying to make sense of gold prices.

• Gold is seen as an inflation hedge but history doesn’t support that
• Gold seen as a hedge against economic disaster, in that sense lower gold is a positive sign

After bumbling for a few minutes, he circled around to the point:

“Nobody really understands gold prices, and I don’t pretend to understand them either