"Crappy Hedge" at work:mathjak107 wrote: well for 40 years it has been a crappy hedge .
[img width=250]http://s2.postimg.org/s6t20u5bt/Crappy_Hedge.jpg[/img]
It looks to me that gold was a great hedge for when stocks and bonds struggled. Yes, that sacrifices gains when stocks and bonds go on a historic 20-year bull run, but that's what hedges do. Argue the theory about how or why it works all you want. You can even argue that you don't personally believe leaving the potential upside on the table for the benefit of hedging the downside is worth it (others will disagree). But the hedging results speak for themselves.