brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
There is a paper in the March/April issue of Financial Analysts Journal titled "Do Precious Metals Shine? An Investment Perspective". I haven't had time to do more than skim it, but the authors appear to have concluded that a modest weighting of gold improves the efficiency of an equity-heavy buy and hold portfolio because gold performs very well in times of high equity market volatility (i.e. when the sh!t hits the fan). They seem to think that you do even better buy buying gold as volatility picks up and selling when it calms down because gold basically lays there and does nothing when things are plodding along as normal.
Of course, the current situation of near record low equity volatility combined with surging gold prices kind of stands all their careful work on its ear...
Of course, the current situation of near record low equity volatility combined with surging gold prices kind of stands all their careful work on its ear...