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

HH What’s The Risk In Holding Stocks Now?
The reason VIX is dubbed a fear index is that it historically spikes higher as traders’ trepidations about declines in the S&P 500 increase.
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Don't Curse The Dark, Buy Hedge Funds
Hedge fund ETF may be poised for a breakout.
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Tech Stocks Are This Year’s Big Winners
It’s probably no surprise to you that technology stocks have been on a roll this year. Broad-based tech indices have doubled or trebled the returns earned by the S&P 500.
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EC Gold And Stocks Poised For Big Moves
While fund runners have been busy selling gold futures short, commercial traders have lightened up their net short positions mightily.
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The Short Bread Market
Exuberance is waning.
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The Year In Factors
Looking for returns, alpha or popularity?
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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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