Today, I want to mention an interesting paper that I read recently, The Golden Dilemma by Claude B. Erb and Campbell R. Harvey (Duke University). Here’s the link to the paper. Today’s blog is not a summary of the paper. But, here are the ten thoughts I found most interesting:
1. Gold has been a relatively poor inflation hedge over the short term. See exhibit and notice that there have been long periods of time when gold has outperformed inflation and long periods of time when it has underperformed inflation.