Gold Price Metrics

Not much happening, which is fascinating

Gold, which had great returns in 2019 and 2020, hasn’t done very well in 2021:

Basically, it hit a new all-time high last year and then that was it:

In fact, it’s been bleeding out since then:

This should be a pretty big surprise. After all, gold is supposed to be an inflation hedge. Inflation has gone crazy this past year and, yet, gold has gone down.

It would have been better to just hold cash, a notoriously bad place to keep money in a high-inflation environment. The weakness is astounding:

The only positive about gold is that it has been less volatile than other investments:

So, what do we make of this? Gold has failed its most basic job, pretty much its only job - to hedge against inflation / currency devaluation. Without that, the shiny stuff isn’t looking nearly as attractive these days.

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