NEW YORK (ETF Expert) -- Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with modestly depreciating currencies.
Theoretically, tactics designed to devalue a currency as well as push borrowing rates into the basement should strongly benefit precious metals like gold. And in the first three years of ultra-accommodative policies (e.g., zero-percent overnight lending, quantitative easing, etc.), the SPDR Gold Trust (GLD) roughly doubled in price.
Lost on the average precious metals advocate, however, was a three-pronged reality at the onset of 2012.
First, China had hit a monumental wall in its growth trajectory, and its demand for metals of all colors began to decline rapidly. In essence, one of the largest pieces of the supply-demand equation had started to bow out.