Is Gold Really a Good Hedge?


Bloomberg’s Macro Man columnist set out to test whether gold really offers protection against market turmoil. What he found was a bit of a surprise.

Gold bugs point to a myriad of reasons to own their favorite metal, from fiat currency debasement to gold’s history as a monetary unit. Among the favorites, however, is gold’s utility as protection against a market or political crisis. In August, for example, Bridgewater Associates LP’s Ray Dalio suggested investors should hold 5 percent to 10 percent of their portfolios in gold to hedge against rising political risks. I’m a macro strategist who writes Bloomberg’s Macro Man column, and I found myself wondering: Is gold really an effective hedge in periods of risk?…

Is Gold Really a Good Hedge?

Categories : Finance

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