Inflation Hedging in Strategic Asset Allocations: Gold or Something Else?

Source: By Roberto Croce, Head of Risk Parity and Alternative Risk Premia, Newton Investment Management North America LLC.

INTRODUCTION

Inflation hedging is of particular interest to investors today, as recent consumer price inflation numbers show inflation rising faster and higher than at any time since the global financial crisis more than a decade ago. In this paper we answer the following questions:

Question 1. Does inflation only matter to investors with liabilities denominated in real dollars?

Answer 1. No. We find that the hedge/no hedge decision does not depend on whether investor liabilities are denominated in real or nominal US dollars. In this paper we will show that high inflation periods are almost as bad on a nominal basis as they are in real terms, particularly when the cash return is zero.

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Gold and Silver unlikely to outperform in the coming months – HSBC

Source: 12/30/2022 2:04:35 PM GMT | By FXStreet Insights Team

Strategists at HSBC remain neutral on Gold and Silver as they see muted momentum.

Higher rates and real bond yields create a competitive disadvantage for Gold

“Despite the recent bounce in commodity prices, we do not expect Gold and Silver to outperform in the coming months.”

“USD’s recent strength has weighed on metals, while higher rates and real bond yields create a competitive disadvantage for Gold compared to cash and bonds.” 

See – Gold Price Forecast: XAU/USD to rebound slightly next year as Fed easing starts – ING

Sparkling 1852-O Liberty Double Eagle NGC AU58

The 1852-O Liberty double eagle claims a substantial mintage of 190,000 pieces, but the issue circulated heavily in the regional economy at the time of issue and few examples were saved by contemporary collectors. As a result, the 1852-O is readily available in lower circulated grades, but it becomes very scarce at the AU58 level, and Mint State coins are rare. The PCGS population is 97 with 28 graded higher. This offering exhibits strong luster, that sparkles under light and contributes to this coin’s excellent eye-appeal.

Listed at $15,800 in the CDN CPG and $16,000 the NGC price guide.

Offered at $14,300 delivered.
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Outlook 2023: Will strong demand outlook lead to a rally in silver?

Source: The Economic Times | Markets | By Pawan Nahar

Synopsis: Silver, other than being a precious metal, has more usage in the industrial sectors and thus, industrial demand also guides its movement. Furthermore, gold also holds influence over silver prices.

Silver witnessed a roller-coaster ride in 2022, thanks to increased volatility in the bullion market and industrial metals but managed to deliver around 15% returns to investors. The metal faced bouts of profit taking but geopolitical tensions kept its demand intact.

Silver, other than being a precious metal, has more usage in the industrial sectors and thus, industrial demand also guides its movement. Furthermore, gold also holds influence over silver prices.

Rahul Kalantri, VP-Commodities, Mehta Equities, said, “In the mid of 2022, we saw see a significant fall in silver prices because of the low industrial demand due to a global slowdown and a drastic jump in dollar index as well as bond yields.”

Silver has its own return characteristics and is an attractive commodity in the present market conditions.

NS Ramaswamy, Head of Commodities, Ventura Securities said, “The gold-silver ra ..

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