The Myth of Gold as an Inflation Hedge [View article]
If this was a "blatant attempt to knock down gold", it's succeeding far better than anyone could have believed!
More likely is the possibility that gold is a highly volatile (and emotional) commodity, with no more inflation resistance than any other commodity -- possibly less, due to all the attention focused upon it.
And rather than looking at the price of gold from the prior peak (1980) or low (~2000), it might be helpful to look at a chart of gold vs the dollar over the past hundred years or so. Then I think one would see that if there is a correlation between the two, it is not a very strong one.
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If this was a "blatant attempt to knock down gold", it's succeeding far better than anyone could have believed!
Apr 02 09:15 am
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All Comments by David Lentz »The Myth of Gold as an Inflation Hedge [View article]
More likely is the possibility that gold is a highly volatile (and emotional) commodity, with no more inflation resistance than any other commodity -- possibly less, due to all the attention focused upon it.
And rather than looking at the price of gold from the prior peak (1980) or low (~2000), it might be helpful to look at a chart of gold vs the dollar over the past hundred years or so. Then I think one would see that if there is a correlation between the two, it is not a very strong one.