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Or: past performance is not a guarantee for future performance. Maybe gold and inflation are no longer as correlated as they used to be.
by andruby 3y ago
Or: past performance is not a guarantee for future performance.
Maybe gold and inflation are no longer as correlated as they used to be.
- throw0101a 3y ago> Maybe gold and inflation are no longer as correlated as they used to be. Or maybe they were never correlated and people just assumed they did and never bothered looking at the data: * https://www.nber.org/papers/w18706 https://www.nber.org/papers/w18706 * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3667789 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3667789
- zo1 3y agoOr me with my tinfoil hat:Gold is correlated with real value and the inflation numbers don't reflect that because they're artificially suppressed. I.e. if gold looks flat growth wise to the dollar, maybe it's cause it actually went up in value but the dollar went down due to inflation.