Gold Befuddles Bernanke as Central Banks’ Losses at $545 Billion

AMP Gold and Precious Metals Portfolio

Ben Bernanke, the world’s most-powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.

Bernanke, who holds economics degrees from Harvard College and the Massachusetts Institute of Technology and led the Federal Reserve through the biggest financial disaster since the Great Depression, told the Senate Banking Committee in July that “nobody really understands gold prices and I don’t pretend to really understand them either.”

Ben S. Bernanke, the world’s most- powerful central banker, says he doesn’t understand gold prices.If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011. Photographer: Dario Pignatelli/Bloomberg

Central banks, which own 18 percent of all the gold ever mined, will add as much as 350 tons valued…

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