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    Gold Is Not an Inflation Hedge, But It Should Do This in Your Portfolio



    Today, gold is best positioned as wealth insurance, according to Mark Yaxley, managing director at Strategic Wealth Preservation. There is a misconception that gold correlates to inflation but really, “it reacts to interest rate-hikes and recessionary environments,” says Mark. “Gold is still outperforming the equites market,” he continues. “The U.S. dollar is the No. 1 driver for the gold price,” Yaxley argues. “Premiums tell the truth on the supply and demand of metals,” and most investors are waiting on the sidelines waiting for an entry point to develop. Yaxley concludes that silver under $20 is still a good deal and, “the market is in an analysis paralysis status and we’re in the midst of a rate-hike cycle, so I would expect gold to react quite well.”

    #gold #silver #interestrates

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    View 50 Comments

    50 Comments

    1. mason appalachiantrail on

      When people tell you gold is not an inflation hedge, please point out that gold mirrors the money supply in lock step, just not on a monthly or even yearly regularity. It always catches up and it’s very far behind right now. It’s going to catch up as always and this time it will have to make moves as drastic as recent money printing.

    4. Mer5eyak 17 on

      Love your videos usually! However, this guy has clear bias so I would not like to listen to him. If the LBMA is corrupt and manipulative its fine and has no negative connotation to it but God forbid somebody else does it, thats soooo bad

    5. Mer5eyak 17 on

      JP Morgan is officially under scruitny for manipulating the Gold price and they have kept it low on purpose, thats fine and not worth mentioning. But somebody else that you dont like is working towards a proper price discovery is so evil right

    7. Romeo Papa on

      This is nonsense it’s all to do with the time period. From Roman times to the present gold has preserved purchasing power. I think this means that it is an excellent inflation hedge, just not necessarily over a short period.

    18. Mantas 2020 on

      It is false, Why did Daniela picked last 24 month, pick 36 months and you have 25% increase, why ? Because 2019 Bank of International Funds reclaimed Gold as Tier number 1 reserve asset, it was number 3 for the last 50 years.. It corelates perfectly with huge growth since that date.

    21. Roberto on

      interesting – was wondering if there is anyone in the industry tracking the premiums as I think that will be a good metric for how strong the demand for precious metals.

    24. Carl on

      I disagree with your guest.
      Gold IS still doing it's 5000 year old job of protecting purchasing power.
      Thus, it IS still a hedge against inflation.
      The reality is, that Gold is presently undervalued because the dollar, the DXY, is being overbought, or is OVER valued.
      This will not be sustainable long term, for various reasons.
      The dollar's drastic loss of purchasing power vs it's value against the DXY is a telltale sign of this.
      Gold and Silver WILL eventually resettle and reprice themselves against the dollar.

    25. Mitchell Langbert on

      The speaker gives an incomplete analysis of the relationship between the price of gold and inflation. Simple correlation is an inappropriate methodology because there are other factors that need to be controlled, notably interest rates and M1 money supply. Correlation gives a simple linear relationship between two variables, but when there are multiple variables correlated with the two variables, then they need to be controlled. Also, the relationship between gold and inflation is not linear, ,so the variables need to be corrected to use correlation analysis, One way to do this is to use the logarithms of the variables, which are similar to using percentages. In times of inflation the Fed raises interest rates, which hurts the price of gold for several reasons. However, when interest rates and several other factors are controlled, the inflation rate does relate significantly to the gold price.

    30. Leta voss on

      Gold is riced with the strength of the dollar.Unfortunately the US economy is not doing well but the rest of the world’s economies are doing worse and the dollar is consequently very strong thus gold appears depressed

    32. J Paul Getty on

      No disrespect when TSHTF I want my Gold and Silver real close . Not on The Cayman Islands, a British Overseas Territory Were the Brits will just seize everything .

    47. stephen ayriss on

      What a joke. 8 months ago he said gold is doing what it is ment to do, a hedge against inflation. Now he is saying that is a false statement. Dude you don’t know what you are talking about. I expect gold to do worse now that I watched you talk.

    48. The Navigator on

      Your guy has no idea about local coin dealers, who have NO gold coins, who are changing $14 over spot for Silver Eagles, and $140 over spot for a Gold Eagles. It used to be $4 over spot for a ASE and and maybe $60-70 over spot for Eagles – good luck finding any/either in your local coins shop, they don't exist. Better to be a year early than a day late. Should have bought last year.

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