Journalist
Contributor's Links: Wealthmanagement.com

Brad Zigler's stints as a contributing editor for the Corporate Communications Broadcast Network, the Journal of Indexes, and CRB Trader set the stage for his role as managing editor of Hard Assets Investor and later as alternative investments editor of Registered Rep. magazine, the most ... more

ALL CONTRIBUTIONS

Inflationary Expectations And Recession Risk
Just how close to a recession are we? And how soon must we realign our portfolios to gird ourselves from its depredation?
Read
EC Need To Hedge Rate Risk?
By now it’s plainly evident that interest rates are in an uptrend. The yield on the 30-year Treasury bond has ticked up 62 basis points over the last 12 months, a 22 percent ascent. That hurt a lot of unhedged portfolios.
Read
EC Mutual Funds Vs. ETFs: Which Is Better For Alpha?
Successful active management is hard to come by and the discovery is only made harder by looking for it in the wrong wrapper.
Read
The Time’s – And Oil’s – A ’Changin’
A contango should be a wake-up call.
Read
EC Has The Market Fallen Ill?
There’s no question that the U.S. economy is undergirded by consumer spending. As much as 70 percent of domestic GDP is attributed to personal consumption.
Read
HH When Will Gold Rebound?
For many traders and investors, momentum is everything.
Read

Comments

Latest Comments
What’s Gold Really Worth?
4 years ago

John -

The "relationship" posited in the article is just that, a "relationship." It's a ratio, not a correlation. A correlation is a distinct statistical construct.

You may very well be right about gold as a hedge against inflation "in the long run." The question is: "What's a long run?" Years? Decades? Millennia?

The fact that an ounce of gold could buy a man's suiting now as in ancient Rome doesn't help someone planning for a nearby retirement.

In this article: GLD
What’s Gold Really Worth?
4 years ago

John -

Yes there is an indirect relationship between bullion prices and the US dollar. That shouldn't be surprising since gold is benchmarked in dollars.

I wouldn't characterize the gold market as being "more stable." There's in fact, a lot more volatility in metals than in currency.

As for the correlation of bullion and CPI, studies have shown that there isn't a statistically significant relationship between the two.

In this article: GLD
What’s Gold Really Worth?
4 years ago

Kate -

The prices tracked in the article, to make them directly comparable to once-a-month CPI, are monthly averages.

GLD, in fact, is highly (>99%) correlated to bullion on a day-to-day basis. The only tracking error is due to the metal sales financing the trust's fees (0.40% per year). That said, the equally well-correlated iShares IAU gold ETF, with a lower (0.25%) expense ratio, should fare even better.

In this article: GLD
1 to 3 of 3 comments

STOCKS I FOLLOW

TWEETS

PERSONAL BLOG

Latest Posts

Work Experience

Education

Publications