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

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EC Utilities Poised For Big Upsides
Investors are naturally drawn to stocks they think are set to rise. Utility investors are no exception, though dividend income and low volatility are prime drivers for most.
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Mr. Bear’s Wild Ride?
Some think the S&P 500 is topping out.
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EC T-Notes On A Tear
Playing them through ETFs is getting simple.
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Cyclicals Outdid Defensives. Until They Didn’t
New ETFs allow trading in investor sentiment.
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Finding A Real Alternative To Beta
Alts have largely disappointed investors. These ETFs optimize low correlation, volatility and—most important—shape statistics.
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Catching A Great REIT Wave
It’s been a good ride. And it may not be over.
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Comments

Latest Comments
What’s Gold Really Worth?
4 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?
4 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?
4 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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