What Does Gold Really Hedge Against?

Bloomberg Quicktake published this video item, entitled “What Does Gold Really Hedge Against?” – below is their description.

Gold is used by many investors to diversify their portfolios and hedge against geopolitical risk. Above all, gold is usually seen as an effective hedge against rising inflation. Has the current climate of price rises and geopolitical upheaval proved these assumptions to be correct? Presented by @cmegroup: https://www.cmegroup.com/openmarkets/quicktake-by-bloomberg.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=more_insight

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In This Story: Inflation

In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

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