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Gold Up Big After Fed Announces QE 2
As The Federal Reserve puts hundreds of billions of dollars into the economy, diluting the money supply, and lowering the value of the US dollar, gold is turning into an attractive way to hedge again possible future inflation. Although inflation is not a worry today, fears that the billions of dollars in extra money supply will eventually raise everyday prices, has really helped the precious metal. Commodity prices are already rising, meaning that everyday prices of goods will also too eventually rise, lowering the spending power of the dollar.
Over the last 12 months the price of gold has risen a staggering 25%, or $286.90 per ounce. Other precious metals are also all up this morning including platinum and silver.
