As U.S. 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 percent 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 percent year to date through July 12.
Read more...
No comments:
Post a Comment