GLDM - Gold's Role As An Inflation Hedge In The 21st Century
2024-06-18 11:15:00 ET
Summary
- Gold buyers jumped in when the inflation news was positive or if there were hints of an economic slowdown.
- Since gold is a non-yielding asset, higher interest rates tend to create headwinds for gold. Investors gravitate toward yielding assets such as bonds, thinking they will get a better return than holding non-yielding gold.
- The price of gold has increased by more than twice the rate of price inflation so far in this cycle.
By Mike Maharrey
Since mid-2021, we lived through the worst price inflation since the 1970s. CPI peaked in June 2022 at 9.1 percent....
Gold's Role As An Inflation Hedge In The 21st Century