CHICAGO, April 22 (Reuters) – In the wake of a dramatic gold
sell-off over the last two weeks, investors are looking for
other ways to hedge against inflation.
They are realizing that the metal is a false prophet of the
hyperinflation that gold bugs have been expecting since 2008.
It’s clear at this point that the scenario probably won’t
materialize in the immediate future. Assets of the SPDR Gold
Trust, the leading gold bullion exchange-traded fund,
have dipped to the lowest level since 2010 on a wave of
Gold, which on Monday traded $100 over a two-year low of
$1,321 on April 16, is also proving not to be a safe haven from
global economic woes. The metal was supposed to be a defensive
shadow currency in a world going to hell, but it turns out to be
highly volatile as well.
The latest massive gold selling was initially ignited by the
prospect of slowing Chinese and American economies, fears about
the euro and dollar, and banking turmoil in Cyprus.
Investors looking for inflation protection, income and
appreciation should instead consider real estate investment
trusts (REITs) as worthy alternatives. The lion’s share of
nervous investor attention has been focused on gold, and few see
REITs as a perennial retirement fund holding or