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

Gold Will Sell Off Until …
The relationship is inverse: as real yields decline, gold tends to appreciate; gold sinks when real yields spike.
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Gold/Oil Ratio Slips Below 20-To-1
Is the indicator a bellwether on the downside?
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Consumers Like Bread And Circuses - And These Consumer Goods ETFs
Does the bread-and-circuses metaphor apply to our present economic climate?
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Target-Date ETFs Are Dead. Long Live Target Risk!
Wrapping target-date strategies inside an ETF hasn't worked. But some ETFs do target an investors' risk profile—for a fee.
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Energy ETFs Were, Well, Energetic In April
The energy sector was less exuberant back then, wasn’t it? So maybe our performance additive only works when there’s a market tailwind. One thing’s certain from the table above: These ETFs are volatile.
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Whither Bonds Now?
The 10-year T-note yield flirts with 3 percent. The 10-year note is the fulcrum for the credit market now.
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Comments

Latest Comments
What’s Gold Really Worth?
3 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?
3 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?
3 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
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