Wednesday, March 31, 2010

Gold Moves To Beat Of Own Drum

A piece by Juan Carlos Artigas of the World Gold Council has been webbed by Forbes; it shows gold having a low correlation with other asset classes, particularly the S&P 500 and T-bills. Interestingly, one of his finding is that the positive correlation of T-bonds to gold is higher than that for the S&P.

The point behind it is to show that gold is a worthwhile diversifier for more normal portfolios. Artigas also includes a brief sketch of the supply-demand configuration for the metal.

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