Gold As A Hedging Instrument? Think Again

  • Gold bulls argue that gold functions as a hedge against inflation, deflation, and systemic risk.
  • Systematic studies do not offer unequivocal empirical evidence for one or the other.
  • However, these supposed hedging rationales can work as temporary heuristics as the price of gold is mostly self-referential.

Gold As A Hedging Instrument? Think Again