Journalist
Contributor's Links: Wealthmanagement.com

Brad Zigler's stints as a contributing editor for the Corporate Communications Broadcast Network, the Journal of Indexes, and CRB Trader set the stage for his role as managing editor of Hard Assets Investor and later as alternative investments editor of Registered Rep. magazine, the most ... more

ALL CONTRIBUTIONS

Alpha Update: Passive Beats Active
Buying the low volatility anomaly on the cheap.
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Should You Add Tech To A Client’s Portfolio?
Chasing the shiny sector may be tempting, but the numbers suggest there are better options to enhance a long-term portfolio.
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Smaller Large-Caps In Play?
Two ETFs aim for real returns.
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EC Yield Curve: Are We Okay Now?
The two-way trade resumes.
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When Low-Vol Is Not
Strategy may require some time to pay off.
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Getting In On Inflation’s Ground Floor
Two ETFs aim for real returns.
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Comments

Latest Comments
What’s Gold Really Worth?
5 years ago

John -

The "relationship" posited in the article is just that, a "relationship." It's a ratio, not a correlation. A correlation is a distinct statistical construct.

You may very well be right about gold as a hedge against inflation "in the long run." The question is: "What's a long run?" Years? Decades? Millennia?

The fact that an ounce of gold could buy a man's suiting now as in ancient Rome doesn't help someone planning for a nearby retirement.

In this article: GLD
What’s Gold Really Worth?
5 years ago

John -

Yes there is an indirect relationship between bullion prices and the US dollar. That shouldn't be surprising since gold is benchmarked in dollars.

I wouldn't characterize the gold market as being "more stable." There's in fact, a lot more volatility in metals than in currency.

As for the correlation of bullion and CPI, studies have shown that there isn't a statistically significant relationship between the two.

In this article: GLD
What’s Gold Really Worth?
5 years ago

Kate -

The prices tracked in the article, to make them directly comparable to once-a-month CPI, are monthly averages.

GLD, in fact, is highly (>99%) correlated to bullion on a day-to-day basis. The only tracking error is due to the metal sales financing the trust's fees (0.40% per year). That said, the equally well-correlated iShares IAU gold ETF, with a lower (0.25%) expense ratio, should fare even better.

In this article: GLD
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