Comments on: Gold ETF Needs More Storage Space http://www.etftrends.com/2008/01/gold-needs-a-bi.html Keeping a grip on exchange traded funds (ETFs) Fri, 12 Mar 2010 13:46:38 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Brad Zigler http://www.etftrends.com/2008/01/gold-needs-a-bi.html/comment-page-1#comment-704 Brad Zigler Mon, 14 Jan 2008 21:28:40 +0000 http://etftrends.com.s14057.gridserver.com/2008/01/gold-etf-needs-more-storage-space.html#comment-704 As a store of value, Alan, gold's actually been something of a bust. The metal may now be priced higher than its previous 1980 high water mark, but that's on a nominal basis only. On an inflation-adjusted basis, it's not been a very good hedge. Gold's average price in 1980, when inflated by CPI to 2007 dollars, was $1,563. Gold has to cross that threshold to rightly earn a badge as an inflation fighter. I'm not saying it can't do it; only that it hasn't yet. From that perspective, crude oil's been a better hedge. Its average 1980 price was just shy of $95 in 2007 dollars, a price we've been paying for months now. As a store of value, Alan, gold’s actually been something of a bust. The metal may now be priced higher than its previous 1980 high water mark, but that’s on a nominal basis only. On an inflation-adjusted basis, it’s not been a very good hedge.

Gold’s average price in 1980, when inflated by CPI to 2007 dollars, was $1,563. Gold has to cross that threshold to rightly earn a badge as an inflation fighter.

I’m not saying it can’t do it; only that it hasn’t yet.

From that perspective, crude oil’s been a better hedge. Its average 1980 price was just shy of $95 in 2007 dollars, a price we’ve been paying for months now.

]]> By: benjamin http://www.etftrends.com/2008/01/gold-needs-a-bi.html/comment-page-1#comment-703 benjamin Mon, 14 Jan 2008 18:51:40 +0000 http://etftrends.com.s14057.gridserver.com/2008/01/gold-etf-needs-more-storage-space.html#comment-703 i do have a enough space in my apartment to store couple of once of Gold ;) Nice article! i do have a enough space in my apartment to store couple of once of Gold ;)
Nice article!

]]>