Wednesday, February 13, 2013

GLD And Gold Shaking Up Hedge Fund Drag

Fasten your seatbelts people.  Following a decade-long rally, gold prices have slumped for much of the past 18 months. Long championed as a source of both capital protection and upside appreciation (especially during the financial crisis and resulting recession), the price of gold has declined while equity markets surged to five-year highs.

Might this foreshadow the end of a bull market in gold that has seen prices more than double in the last four years, and nearly quadruple since 2004?

At first glance it may seem investors are acting sensibly by increasing their equity exposure while eschewing more defensive asset classes. Upon closer inspection, however, gold appears due for another strong upswing...

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