Comments on: Gold Jumps: Has It Become Correlated To The Stock Market? http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/ Join me on my journey to achieve financial independence through dividends, passive income and investments Thu, 11 Mar 2010 17:23:08 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Mark http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/comment-page-1/#comment-24334 Mark Wed, 26 Nov 2008 05:14:16 +0000 http://livingoffdividends.com/?p=853#comment-24334 bad idea long-term if we see deflation which it looks like bad idea long-term if we see deflation which it looks like

]]> By: Gold Reviews » Has Gold Become Correlated to the Stock Market? http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/comment-page-1/#comment-24228 Gold Reviews » Has Gold Become Correlated to the Stock Market? Tue, 25 Nov 2008 06:04:36 +0000 http://livingoffdividends.com/?p=853#comment-24228 [...] been following their prices for years. Gold is supposed to have a negative correlation with the stock market. This year has proven otherwise. Of course, as we’ve seen repeatedly in the past, all asset [...] [...] been following their prices for years. Gold is supposed to have a negative correlation with the stock market. This year has proven otherwise. Of course, as we’ve seen repeatedly in the past, all asset [...]

]]> By: Jeffrey Nichols http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/comment-page-1/#comment-24153 Jeffrey Nichols Mon, 24 Nov 2008 13:13:49 +0000 http://livingoffdividends.com/?p=853#comment-24153 Over the long haul, gold has proven to have little correlation to the stock market or bonds. It is the lack of correlation that makes gold attractive as a portfolio diversifier. That said, there are periods when gold seems correlated, either positively or negatively, to the stock market. The recent past has been such an occasion. Sometimes when stocks are falling sharply, investors holding gold are forced to sell the metal in order to cover losses in other markets. This includes not only individual investors but hedge funds and other institutional traders, some of whom are liquidation index-based commodity positions where gold is just a component of the index. For more, see my blog NicholsOnGold.com Over the long haul, gold has proven to have little correlation to the stock market or bonds. It is the lack of correlation that makes gold attractive as a portfolio diversifier. That said, there are periods when gold seems correlated, either positively or negatively, to the stock market. The recent past has been such an occasion. Sometimes when stocks are falling sharply, investors holding gold are forced to sell the metal in order to cover losses in other markets. This includes not only individual investors but hedge funds and other institutional traders, some of whom are liquidation index-based commodity positions where gold is just a component of the index. For more, see my blog NicholsOnGold.com

]]> By: Ademac http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/comment-page-1/#comment-24101 Ademac Mon, 24 Nov 2008 01:26:51 +0000 http://livingoffdividends.com/?p=853#comment-24101 It is all a mater of perspective. I am investing in gold and silver bullion. As a hedge against the twin evils of Inflation and Deflation. Whilst de-leveraging has smashed the gold price in USD down, that same De-leveraging has pummels the AUD so my investment into gold to protect my wealth has increased in value. http://www.kitco.com/gold_currency/charts.htm?AUD If you want to look further into Gold and its correlations i would suggest you visit http://www.financialsense.com/ Plenty of different perspectives on what is going on in the gold and silver markets. Its an Honour to be Ademac It is all a mater of perspective. I am investing in gold and silver bullion. As a hedge against the twin evils of Inflation and Deflation.

Whilst de-leveraging has smashed the gold price in USD down, that same De-leveraging has pummels the AUD so my investment into gold to protect my wealth has increased in value.
http://www.kitco.com/gold_currency/charts.htm?AUD

If you want to look further into Gold and its correlations i would suggest you visit http://www.financialsense.com/ Plenty of different perspectives on what is going on in the gold and silver markets.

Its an Honour to be
Ademac

]]> By: Dividend Growth Investor http://livingoffdividends.com/2008/11/22/gold-jumps-has-it-become-correlated-to-the-stock-market/comment-page-1/#comment-24073 Dividend Growth Investor Sun, 23 Nov 2008 19:02:45 +0000 http://livingoffdividends.com/?p=853#comment-24073 The problem with gold is that an investment in the precious metal does not produce any income. The person who buys gold relies on others to push the price up so that the first investor realizes capital gains. Furthermore, unlike oil and other commodities which have a finite amounts out there, the amounts of gold and silver increases over time. Whenever gold is extracted, it is transformed into objects which could later be made into gold bars, coins or something else. I would only view gold as a viable investment for an ultra doom and gloom situation where all paper assets collapse and we get the end of the world as we know it. An investment in gold would have been great for European investors in the first half of the 20th century. As for US investors, I read somewhere that FDR made investing in gold illegal right after the end of the great depression except for numismatic coin collecting. The problem with gold is that an investment in the precious metal does not produce any income. The person who buys gold relies on others to push the price up so that the first investor realizes capital gains.
Furthermore, unlike oil and other commodities which have a finite amounts out there, the amounts of gold and silver increases over time. Whenever gold is extracted, it is transformed into objects which could later be made into gold bars, coins or something else.
I would only view gold as a viable investment for an ultra doom and gloom situation where all paper assets collapse and we get the end of the world as we know it. An investment in gold would have been great for European investors in the first half of the 20th century. As for US investors, I read somewhere that FDR made investing in gold illegal right after the end of the great depression except for numismatic coin collecting.

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