Will gold survive a hawkish Fed?
Gold doesnt get any respect for its core attribute. Some investors think of gold as an inflation hedge because it has maintained its purchasing power over time. Others seem to think that gold is some type of hedge against a stock market crash. Yet gold doesnt correlate with the stock market and it doesnt move in lockstep with the Consumer Price Index. It is a hedge against the federal government making bad fiscal policy. While inflation does come about because of bad policy, it isnt a cause-and-effect relationship with the worlds favorite shiny metal. Gold is the ultimate hedge on the government screwing up, and they have been screwing up quite a bit this new century.