Gold: Not an Effective Hedge Against Inflation [View article]
This "analysis" ignore the interest earned on the capital covering the futures contracts. Since we are talking about an unleveraged strategy here, we need to assume that the investor fulling funds the futures purchase. The easiest assumption is that those funds are invested in short term treasuries. Once we fix this error in the analysis, the results are very different.
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This "analysis" ignore the interest earned on the capital covering the futures contracts. Since we are talking about an unleveraged strategy here, we need to assume that the investor fulling funds the futures purchase. The easiest assumption is that those funds are invested in short term treasuries. Once we fix this error in the analysis, the results are very different.
Dec 23 14:42 pm
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All Comments by tew »Gold: Not an Effective Hedge Against Inflation [View article]