الثلاثاء, 13 آذار/مارس 2018 10:05

Why Gold is a Poor Inflation Hedge

Written by
Rate this item
(0 votes)

(New York)

When you think of gold’s role in a portfolio, most would immediately say it is for hedging against inflation. However, new research shows that gold is only a good hedge for inflation over very long periods, such as decades or centuries. In normal time horizons, say one to five years, it is a very weak hedge, and equities have performed much better. Now this is not to say gold cannot be a good asset class in its own right, just that its traditional role should be rethought.


FINSUM: If gold is really a poor inflation hedge, then investors and their advisors need to think very carefully about how they conceptualize it within their portfolios.

Contact Us

Newsletter

اشترك

Subscribe to our daily newsletter

Top