Entering text into the input field will update the search result below

Why Gold Is Still A Poor Inflation Hedge



  • Gold has an extremely low correlation to inflation.
  • During the pandemic, the price of gold spiked initially when the first big batch of government spending was announced but underperformed when inflation actually arrived.
  • There are far better inflation hedges to be found in the realm of real estate.
  • Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our model portfolio. Learn More »

Gold bars or ingots in a row. Financial and investment concept.

Bet_Noire/iStock via Getty Images

Co-produced by Austin Rogers

Our May 2021 article "Why Gold Is A Poor Inflation Hedge" stirred up quite a controversy. But we do not believe our argument was as controversial as many readers seemed to think.

Gold vs inflation

Gold vs inflation ((CNBC))

Gold price vs. US consumer price index

Gold price vs. US consumer price index (YCHARTS)

Gold price vs. US consumer price index

Gold price vs. US consumer price index (YCHARTS)

Gold price vs. US consumer price index

Gold price vs. US consumer price index (YCHARTS)

Gold price vs. US M2 Money

Gold price vs. US M2 Money (YCHARTS)

Apartment community as an inflation hedge

Apartment community as an inflation hedge (BSR REIT)

Amazon warehouse as an inflation hedge (STAG Industrial)

Amazon warehouse as an inflation hedge (STAG Industrial)

Farmland as an inflation hedge (Gladstone Land)

Farmland as an inflation hedge (Gladstone Land)

If you want full access to our Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Landlord.

We are the largest real estate investment community on Seeking Alpha with over 2,500 members on board and a perfect 5/5 rating from 400+ reviews:

          For a Limited Time - You can join us at a deeply reduced rate!

          Start Your 2-Week Free Trial Today!

This article was written by

Jussi Askola profile picture
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.

Jussi Askola is a former private equity real estate investor with experience working for a +$250 million investment firm in Dallas, Texas; and performing property acquisition in Germany. Today, he is the author of "High Yield Landlord” - the #1 ranked real estate service on Seeking Alpha. Join us for a 2-week free trial and get access to all my highest conviction investment ideas. Click here to learn more! 

Jussi is also the President of Leonberg Capital - a value-oriented investment boutique specializing in mispriced real estate securities often trading at high discounts to NAV and excessive yields. In addition to having passed all CFA exams, Jussi holds a BSc in Real Estate Finance from University Nürtingen-Geislingen (Germany) and a BSc in Property Management from University of South Wales (UK). He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives.

DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. The information in his articles and his comments on SeekingAlpha.com or elsewhere is provided for information purposes only. Do your own research or seek the advice of a qualified professional. You are responsible for your own investment decisions. High Yield Landlord is managed by Leonberg Capital.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BSR; CPT; STAG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.