RE:RE:RE:RE:What's going on?I have posted the following in last October. You may find it that you are not the only one. You may want to read the article:
The Correlation Between Gold And Inflation ---------------------------------------------------------------------------------------------------------------------------------------------
Gold bug and many have explained why you need gold as the hedge for inflation. With the QE, inflation is going explode soon. I did believe it for a long time but doubt was brewing. However I don't have the data to solve the puzzle. The following article shows multiple scearios of gold price and inflation. You can draw your concludion.
The Correlation Between Gold And Inflation
The paper draws the following conclusion: What Do Experts Say? The Wall Street Journal authorized a study that was carried out by the research firm Ibbotson Associates. After detailed research, they arrived at a correlation value of 0.08 for the period between 1978 and 2010 for the gold rate and inflation. This is as good as no relation. (Correlation value ranges from -1 to 1, -1 being the perfect negative correlation, 1 is the perfect positive correlation and zero is the absence of any correlation). Another study commissioned by Citibank in 2009 also came to the same conclusion that “there is no obvious relationship between the gold price and inflation”. As can be seen by studying the three graphs given above, the gold prices somewhat follow inflation at times, but on other occasions, it shows an inverse or a weak relationship with inflation. Using these data, the only conclusion that can be drawn is that there is no correlation between the gold rate and inflation. Sdeen33 wrote: we hawve inflation hitting record highs, and gold is going down. I no longer think gold is the hedge against rising interest rates and high inflation.