Sep 19, 2012 All Signs Pointing to Gold Frank Holmes 321gold ...s With another syringe of quantitative easing being injected into the U.S. economys bloodstream, Ben Bernanke is giving the markets their liquidity fix. The Federal Reserves action reaffirmed my stance Ive reiterated on several occasions that the governments across developed markets have no fiscal discipline, opting for ultra-easy monetary policies to stimulate growth instead. The governments liquidity shot promptly boosted gold and gold stocks, as investors sought the protection of the precious metal as a real store of value. You can see below the strong correlation between the rising U.S. monetary base and growing gold value. Since the beginning of 1984, as money supply has risen, so has the price of gold.