Investors often use
gold as a hedge against inflation, but higher interest rates dent the appeal of gold, which earns nothing and costs money to store and insure.
So he chose stocks for periods of prosperity, cash to keep you afloat in a recession,
gold as a hedge against inflation, and long - term bonds as a safety net in times of deflation.
I don't think that's what most people mean when they talk of
gold as a hedge against inflation in their portfolio.
What is the best way to invest in
gold as a hedge against inflation without having to hold physical gold?
So, if you want to use
gold as a hedge against inflation, go ahead.
Bridgewater is bullish this year on
gold as a hedge against inflation.
Not exact matches
Falling oil also makes
gold less attractive
as a
hedge against inflation, said Gero.
Gold may reach a record this year
as demand for a
hedge against inflation outpaces an expanding scrap supply and weaker use elsewhere.
Firstly, lower real rates could imply higher inflationary expectations in the future therefore
gold is bought
as a
hedge against this possible
inflation.
Investors who are attracted to
gold often tout it
as a
hedge against inflation.
Indeed,
gold is often seen
as the
hedge against inflation, since it often gains value
as the dollar loses it (but not always).
In a research note, Barclays Capital explains «For analysts...
gold has traditionally been a tricky one due to its multiple roles
as a commodity, currency,
inflation hedge and
hedge against credit risk and macroeconomic uncertainty.
Again, stocks fare the worst, while
gold looks relatively compelling
as a
hedge against «unexpected
inflation», particularly in North America.
A chapter on
hedging against inflation focuses on finding stocks with «moats» that can raise prices
as inflation starts to roar, and the final chapter looks at commodities,
gold and other real assets.
Gold is the best
hedge against uncertainty there is, and it's also a useful thing to have in your portfolio if
inflation is rising,
as some foresee, or if the U.S. dollar's decline worsens.
Among hard assets, the classic investment is
gold, which is widely seen
as a
hedge against inflation and political turmoil, and viewed
as a good diversifier for financial assets like stocks and bonds.
I tend to feel that when you're investing in
gold you're investing in the market's perception of
gold as a safe
hedge against inflation since
gold has minimal inherent value
as an investment.
Gold is used
as a
hedge investment
against inflation and is the perfect way to store wealth over time.
iShares
Gold Trust,
as a
hedge against global turmoil, a falling dollar and the threat of future
inflation.
While I can understand the value in having
hedges against inflation, I'm at a bit of a loss over the value of having
gold versus TIPS since
gold has the possibility of losing value versus what I paid for while it while instruments such
as the TIPS don't have that problem.
@JohnFx, Renesis - Correct, I'm interested more in if the value of
gold (besides uses) is derived more from it being viewed
as a
hedge against inflation or if it is also viewed
as a possible investment in the same way shares in a company are.
Investments in
Gold are used
as a
hedge against inflation and currency devaluation, and
as a safe haven
against any economic crises.
Gold is also a safe
hedge against inflation other than being a physical asset and is viewed
as the safest investment option.
If you're more interested in a
hedge against the U.S. dollar or to combat
inflation, then
gold might serve
as the more appropriate option.