Is gold really a good hedge?



Is gold really a good hedge?

Typically, gold is slightly better volatility hedge, while both silver and gold are effective inflation hedges. Hedge funds like LEHNER INVESTMENTS Data Intelligence Fund that employ long / short and market neutral investment strategies can also be used to hedge a portfolio against a market crash.

Is gold or platinum the better ‘inflation hedge’ investment?

On the upside, some see platinum as a better investment in the near future than gold. Prices of silver and gold are surging since investors often flock to those two precious metals in uncertain economic times. The Federal Reserve has kept interest rates low and the money supply high, which weakens the dollar.

Is gold still a good hedge to a bad economy?

Gold is a hedge on government authorities making poor economic choices. Inflation is usually the result of those poor decisions, but people confuse cause and effect here.

Does gold really serve as an inflation hedge?

While many investors may like to keep a small slice of gold or other precious metals in their portfolio, gold is not effective on a larger scale as a reliable hedge against inflation, and entails more price volatility than most investors can stomach. Recent research by investment data firm Morningstar, reported on CNBC, came to the same conclusion.