We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 January 1983 Financial Analysts Journal Volume 39, Issue 1

Gold versus U.S. Common Stocks: Some Evidence on Inflation Hedge Performance and Cyclical Behavior

  1. Anthony F. Herbst

An examination of the long-term relationship between the price of gold and the stock market in the United States suggests that, over the very long term, gold may be inferior to the stock market as investment and as inflation hedge, even when dividends on stock investments are excluded. Whether or not historical relationships will continue to hold in an era in which gold is no longer formally linked to the dollar is open to question, however. Furthermore, based on its characteristics in the portfolio context, gold can play an important role in portfolio investment management.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content