Thursday, June 19, 2014

World Gold Council discovers reasons to invest in gold

In today's astonishing publication, the WGC has announced that it has discovered that gold is poorly correlated to equities and is impacted by the business cycle differently than other commodities; consequently it may be good for something other than jewelry.

Link here.

Is there a connection with this story?

2 comments:

  1. " it has a correlation to equities that is lower than any alternative asset."

    I can interpret at least three ways. It`s vauge.

    1. Absolute correlation is lower meaning toward 0.
    2. Correlation is lower meaning can be toward 0 or negatively correlated toward, -1.
    3. Umm. Never mind.

    ReplyDelete
  2. " it has a correlation to equities that is lower than any alternative asset."

    I can interpret at least three ways. It`s vauge.

    1. Absolute correlation is lower meaning toward 0.
    2. Correlation is lower meaning can be toward 0 or negatively correlated toward, -1.
    3. Umm. Never mind.

    ReplyDelete