Gold: Big difference which kind of hedge it truly is

Timor Invest
https://ift.tt/2LicW35

AlhambraInvestments/Jeffrey P. Snider/8-30-2019

“In other words, even on the inflation side we have to qualify gold’s value as a hedge. It doesn’t protect against inflation shifting from one moderate level to another; say, from around 1% to 2%. Or even 3% and 4%. As is clear on the chart above, gold skyrocketed when inflation was pitching double digits – meaning an economic situation that had gotten way out of hand despite the ‘best” efforts of officials.’”

USAGOLD note:  Snider digs deeply to find gold’s real role in the portfolio – an article for those looking to more closely identify the longer-term psychological drivers to gold demand.

---

Image courtesy of VisualCapitalist

Source: USA gold