Need a Weakened Dollar Hedge?

                   

Apropos my previous blog: Need a weakened dollar hedge?

Gold is still not a panacea. It offers no earnings. And has storage and insurance costs if bought outright.

This alone  isn’t too bad when interest rates are low, but proves costly when interest rates are high or are rising. And you can be sure interest rates will go far higher as inflation becomes more of an economic factor.

                   

Moreover, higher interest rates generally spell a stronger dollar, and more pressure on gold. And remember when seeking an inflation hedge. For 25 years, from 1985 to 2010, consumer prices went up a bit more than 200%. Yet, during this time, gold prices were off by about 20%,(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)