“The use of monetary stimulus, in the hopes that a demand kick will snowball into a virtuous cycle in each national economy, hasn’t worked to achieve its main objective for the past five years. But it has created big fluctuations in asset markets, giving speculative capital a golden opportunity to engage in the biggest wealth redistribution in modern history. Despite its recent setback, gold remains a big beneficiary of the current macro environment. It could make a new high in the current year and rise much higher in 2014. The gold bull market will end when an inflation crisis pushes central bankers around the world to tighten aggressively.”
