| As US interest rates have risen, owning gold has been a loser's game for anyone is trying to hedge against inflation. Gold isn't a smart inflation hedge, but many people have been using it that way because they think they have few alternatives.
A low-inflation rate has been punishing to gold investors for the past three months, and the Consumer Price Index has been running well under 2 per cent this year. As evidence, the leading gold bullion vehicle, the SPDR Gold Trust ETF, has lost nearly a quarter of its value over the past year as investors continue to sell out of their positions. It was down 23 per cent year to date through July 12...............................................Full Article: Source |