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

Geometry For Stock Investors
Triangle formation warns of a volatility spike.
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Your Summer ETF 'Reading List'
The technical picture for three fundamental portfolio building blocks exemplified in popular exchange-traded funds: stocks, bonds, and gold.
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Do Long/Short Equity Funds Work?
Freed from a long-only constraint, long/short managers have greater flexibility to search for alpha. But we found only one fund that beat out a typical 60/40 core portfolio.
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Is The Small Investor Always Wrong?
Small traders have turned bearish on bullion in a big way.
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The Good And Bad News About VLO
VLO's rapid rise has also become the speed of its descent.
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Are Commodities Gaining On Stocks?
Is the index rising because equities are weakening while commodities tread water or is there real strength in the futures market?
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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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