# Prof. Nouriel Roubini explains the forces behind the price of gold

1 Faculty News June 3, 2013 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/con_034412.gif?itok=MRidxYS3)>

Excerpt from [CNBC](http://www.cnbc.com/id/100783239) -- "A lack of inflation is a key driver for gold losses and global prices are falling despite quantitative easing doubling or even tripling the money supply in most advanced economies, he noted. 'The reason (for this) is simple: while base money is soaring, the velocity of money has collapsed, with banks hoarding the liquidity in the form of excess reserves. Ongoing private and public debt deleveraging has kept global demand growth below that of supply.'"

[Read more](http://www.cnbc.com/id/100783239)

Additional coverage appeared on [MarketWatch](http://blogs.marketwatch.com/thetell/2013/06/03/roubini-why-gold-that-barbarous-relic-will-trade-below-1000-by-2014/).