Is gold really an inflation hedge?

The conventional view is that gold is a hedge against inflation, and the price will continue to rise for some time. But is that really the case? And if it's not, how can we use that fact to make profitable trades?

Yes, I know I bang on a lot about gold. But gold is popular right now. And that spells opportunity for anyone like me, who likes to bet against the crowd.

The fact is that a contrary approach can, with good timing, provide us with relatively quick not to mention huge profits. When a bubble bursts, it happens in a flash compared with the time taken to inflate it.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.