09.08.2013 - Gold: Not much of a hedge for anything, unless you're a centurion
Gold has many uses, but as a hedge against inflation or a declining dollar, itís a flop. Thatís the conclusion of an exhaustive article in the current issue of the Financial Analysts Journal, which examines six different explanations for why gold prices rise and fall. Authors Claude Erb and Campbell Harvey, a professor at Duke Universityís Fuqua School of Business, conclude that the assumptions of most investors ó that gold rises during times of inflation, or serves as a hedge against a collapsing dollar ó donít measure up. The most likely explanation for why gold prices go up is because gold prices are going up...............................................Full Article: Source
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