tag:blogger.com,1999:blog-4159906646513306121.post4438935041397092869..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: Value of gold: is this time really different?Economic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4159906646513306121.post-58262915696320952152013-02-09T07:32:33.073-08:002013-02-09T07:32:33.073-08:00Economic Logician,
The question remains: what woul...Economic Logician,<br />The question remains: what would you buy if you expected the volatility of the long term price level to rise? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-91666355238009316662013-02-09T07:18:27.397-08:002013-02-09T07:18:27.397-08:00The free download version of the paper is availabl...The free download version of the paper is available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2078535Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-57510519132637781692013-02-09T06:19:31.769-08:002013-02-09T06:19:31.769-08:00For one to buy gold in such circumstances and the ...For one to buy gold in such circumstances and the current gold price, one would need to expected volatility at level dramatically higher than anything experienced in history. Gold is not the solution, and especially now.Economic Logicianhttps://www.blogger.com/profile/10171296292101248614noreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-45146907069198364302013-02-08T17:10:05.856-08:002013-02-08T17:10:05.856-08:00Let's assume, for a moment, that you believe t...Let's assume, for a moment, that you believe the expected volatility of the long term price level will rise. <br /><br />Given the wider range of outcomes, its hard to know whether bonds will deliver a real return. You could buy stocks or other risk assets, but their real return is negatively correlated with price level volatility. You could buy the currency of an issuer with stable price level volatility expectations. If you could find none, what would you buy?<br /><br />Again, I'm not asking if you agree with the premise on the price level. I'm asking what you would buy if you did.Anonymousnoreply@blogger.com