Vladimir Senkov

Why Gold Hasn't Been a Hedge Against Inflation

John,
you said that eventually it might make sense to hedge long gold positions by going long oil.
Excuse me for stating the obvious, but this is very difficult to do with oil. Gold is easy. I buy bullion and store it in a vault. Oil on the other hand is expensive to store. If you think oil is "cheap" now look at the contango! It's not going to be cheap at all if you wanted to hedge a longer term position (even if it is just a few months long).