Gold, the Golden Constant, and Déjà Vu
Publication
, Journal Article
Erb, C; Harvey, CR; Viskanta, T
Published in: Financial Analysts Journal
October 23, 2020
Currently, the real, or inflation-adjusted, price of gold is almost as high as it was in January 1980 and August 2011. Since 1975, periods of high real gold prices have occurred during periods of elevated concern about high future price inflation. Five years after the real price peaks in January 1980 and August 2011, the nominal (real) prices of gold fell 55% (67%) and 28% (33%), respectively. Today’s high real price of gold suggests that gold is an expensive inflation hedge with a low prospective real return. The financialization of gold ownership by exchange-traded funds, however, may introduce a period of irrational exuberance.
Duke Scholars
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
October 23, 2020
Volume
76
Issue
4
Start / End Page
134 / 142
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability
Citation
APA
Chicago
ICMJE
MLA
NLM
Erb, C., Harvey, C. R., & Viskanta, T. (2020). Gold, the Golden Constant, and Déjà Vu. Financial Analysts Journal, 76(4), 134–142. https://doi.org/10.1080/0015198X.2020.1817698
Erb, C., C. R. Harvey, and T. Viskanta. “Gold, the Golden Constant, and Déjà Vu.” Financial Analysts Journal 76, no. 4 (October 23, 2020): 134–42. https://doi.org/10.1080/0015198X.2020.1817698.
Erb C, Harvey CR, Viskanta T. Gold, the Golden Constant, and Déjà Vu. Financial Analysts Journal. 2020 Oct 23;76(4):134–42.
Erb, C., et al. “Gold, the Golden Constant, and Déjà Vu.” Financial Analysts Journal, vol. 76, no. 4, Oct. 2020, pp. 134–42. Scopus, doi:10.1080/0015198X.2020.1817698.
Erb C, Harvey CR, Viskanta T. Gold, the Golden Constant, and Déjà Vu. Financial Analysts Journal. 2020 Oct 23;76(4):134–142.
Published In
Financial Analysts Journal
DOI
ISSN
0015-198X
Publication Date
October 23, 2020
Volume
76
Issue
4
Start / End Page
134 / 142
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 3501 Accounting, auditing and accountability
- 1502 Banking, Finance and Investment
- 1501 Accounting, Auditing and Accountability