Gold as an Inflation hedge?
A few days ago, I was discussing some market-related events with a mate of mine. Actually, this was right after Netflix had a 20% correction. Anyways, we were talking about the US rates possibly rising and other Central Banks following the same process. Also, since we know "for sure" that inflation is here (regardless of transitory or not), the conversation quickly shifted to the mighty alternative asset: THE GOLD . An asset class that has been around thousands of years and also probably the only asset class which has more stories made up about it than empirical evidence. In an attempt to clear the questions that were in my head, I stumbled upon research done by Harvey and Erb (2013) where they ask questions like, "Just how much of a hedge the gold really is against inflation?" and "What happens if the central bankers of emerging nations start hoarding gold like that of their developed counterparts?". I will try to review and add some more data to the qu