On Gold As An Inflation Hedge
“A recurring theme gold [(GLD)(IAU)] speculators use to justify their positions, is that gold, over time, works as an inflation hedge. This argument has severe problems.
Over the very long term, gold can indeed act as an inflation hedge. But as with any other asset, it matters greatly at what levels you buy it. At the tail end of a giant bull market, gold as any other over-inflated asset does not hedge inflation properly. Indeed, it can even lead to massive nominal losses (never mind the real ones).” (From Seeking Alpha)
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