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: Mortgage Lender Implode-o-MeterGold: the ultimate inflation hedge
By Implode-Explode Heavy Industries
A rather extensive gold feature given that the article only interviews two "experts", both of them bearish on gold (while GoldMoney is mentioned in the article, the obvious step of interviewing its CEO James Turk was not taken. Of course, he's long-term bullish on gold). Looks like a grudging attempt to proffer up some gold coverage, since not doing so is beginning to look increasingly stupid for mainstream publications.
Given our current economic situation, it's not hard to see why there is increasing demand for an asset that appears to offer inflation-proofed returns. The consumer prices index (CPI), the Government's preferred measure of inflation, is now running at 4pc, while the retail price index (RPI), which takes into account housing costs and is for many people a more realistic gauge of how prices are rising, stands at 5.1pc. Both are expected to rise further this year.
Full post as published by Mortgage Lender Implode-o-Meter on February 19, 2011 (boomark / email).
Esquires investment advice
Courtney Comstock is absolutely right when she runs a story under the headline "You Know It's Over When Esquire Magazine Is Telling Its Readers How To Invest In Gold Funds". In a spectacularly silly article, Esquire's Ken Kurson extolls the virtues of buying gold-denominated hedge funds, on the grounds that if the hedge fund doubles and gold doubles, then you'll end up quadrupling your money! Genius.
MARTIN FELDSTEIN: Gold is a poor inflation hedge.
MARTIN FELDSTEIN: Gold is a poor inflation hedge.
Gold-denominated hedge funds
For a while now, hedge funds have been creating share classes denominated in gold. By far the biggest fish in this pool is John Paulson, and as a result he's been buying gold, literally, by the ton...
Markets seeing inflation ahead
Bloomberg is reporting that yields on the the Treasury's latest 5-year Treasury Inflation-Protected Securities (TIPS) offering have gone negative for the first time ever. The dollar has also just hit a 15-year low against the yen...
China Buys Gold as Inflationary Hedge
China is betting that the United States Dollar will decline in value: The mainland is seriously considering a plan to diversify more of its massive foreign-exchange reserves into gold, a person familiar with the situation told The Standard....
GREG MANKIW ON INFLATION: The Monetary Base is exploding. So what
UPDATE: A hedge-fund reader
GREG MANKIW ON INFLATION: The Monetary Base is exploding. So what? UPDATE: A hedge-fund reader emails: The monetary high command is in full butt-covering mode now. There are so many ill-defined moving parts in their policy kit that both history and forecasts can be drafted to ensure their retrospective accuracy...
Hedge Funds
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