Professor Campbell Harvey says gold is as volatile as the S&P 500, but some dynamics could be changing
If history repeats itself, investors won’t buy their inflation hedge by investing in gold—nor will shoppers, by buying gold bars at Costco.
Professor Campbell Harvey of Duke University’s Fuqua School of Business said the idea that gold keeps its purchasing power, shielding the owner of bars or jewelry from the devaluating effect of rising prices, is only true over long stretches of time.
[This article has been reproduced with permission from Duke University's Fuqua School of Business. This piece originally appeared on Duke Fuqua Insights]