Traditionally Speaking
In 2011, then Federal Reserve Chairman Ben Bernanke sat opposite Republican Congressman Ron Paul at the Financial Services Committee semi-annual review. At one point, Representative Paul prompted Mr. Bernanke, “The price of gold today is fifteen hundred and eighty dollars...when you wake up in the morning, do you care about the price of gold?” Mr. Bernanke calmly replied, “Well I pay attention to the price of gold, but I think it reflects a lot of things…the reason people hold gold is as a protection against global uncertainties—what we call tail risk.”