Gold: Big difference which kind of hedge it truly is

AlhambraInvestments/Jeffrey P. Snider

Visual Capital graphic of five reasons to own gold – diversify, store value, safe haven, fundamentals, contrarian value
“In other words, even on the inflation side we have to qualify gold’s value as a hedge. It doesn’t protect against inflation shifting from one moderate level to another; say, from around 1% to 2%. Or even 3% and 4%. As is clear on the chart above, gold skyrocketed when inflation was pitching double digits – meaning an economic situation that had gotten way out of hand despite the ‘best’ efforts of officials.'”

USAGOLD note:  Snider digs deeply to find gold’s real role in the portfolio – an article for those looking to more closely identify the longer-term psychological drivers to gold demand.

Image courtesy of VisualCapitalist

Repost from 9-2-2019

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