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

DBA Is Not Doing Business As Usual
Ag ETF may provide finally positive returns.
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Junk Bonds Pick A Happy Tune For Stocks
If you want to bet against junk bonds, SJB lets you for just 89 basis points a year. Even if you don’t want to short the junk market, SJB is still worthy of your consideration if for nothing else than as a bellwether of the stock market’s health.
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ETFs For Higher Rates And Inflation
The new president has an ambitious plan to spend money and cut taxes. Here are a few exchange-traded funds that can provide some ballast for a likely rise in both interest rates and inflation.
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A Season Of Magic
Is the oil trade getting ahead of itself? And if VLO hits the new objective? Voilà! A 32 percent return. That’s not magic. It’s just good money management.
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The New Year Charted For Stocks
The size of the spread tends to shrink and expand along with investors’ fears. When punters feel ebullient about the economy, they tend to pile into SPY, widening the spread.
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Inflation Is Finally A Factor
Gold is often touted as the ultimate inflation hedge. Sometimes, gold’s trajectory and inflation expectations diverge significantly.
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Comments

Latest Comments
What’s Gold Really Worth?
2 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?
2 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?
2 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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