How Much Gold It Takes To Immunize A Bond Portfolio Against Inflation

How Much Gold It Takes To Immunize A Bond Portfolio Against Inflation | The Interest-Rate Outlook

by David Ranson

T-Bond prices tend to fall prey to accelerations in the rate of inflation as measured by the consumer price index. But the price of gold is several times more sensitive on the upside. Thus including gold in a bond portfolio is an effective way to immunize portfolio returns against rising inflation.