Comments on: Gold will protect you during deflation too, says Lombard Odier Insights behind the investment headlines Wed, 16 Nov 2016 21:43:49 +0000 hourly 1 By: AlephAdvisors Sat, 24 Dec 2011 00:03:21 +0000 “During the current crisis too, gold prices have risen 171 percent in the past 58 weeks.

That’s an annualised real return of 20.6 percent, says Lombard Odier CIO Paul Marson.”

FALSE — 171 percent does not equate to an annualized real return of 20.6, unless you’re reasoning in some currency belonging to an economy suffering from hyperinflation. Even assuming 17.1% instead of 171%, the numbers don’t look right if your base currency is the dollar. An annualized nominal figure would be less than 17.1% (58 weeks is longer than a year) and the U.S. is not experiencing deflation right now.