Monday, 27 September 2010

Buy Gold/Silver as insurance or hedge against inflation?

Here is the Maths and decide for yourself how wrong can you be by ignoring hedging?


Let simply assume your  wealth is $100K and you hedge 7% of it with Gold/Silver and SGD depreciated by -30% and Gold/Silver appreciated by 300%.

So what is difference between hedge and No-hedge?

This is just 23%.  Is 23% that significant for 7% hedge?

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