Unfortunately, research from academics and other experts paints a much different picture about investing in gold.
Recent research, Gold, the Golden Constant, and Déjà Vu states “there are decades where gold underperforms inflation”. It also shows decades where gold outperforms inflation concluding that it acts unreliably as a good hedge for inflation. One of the researchers, Campbell Harvey, wrote an article in 2020, Debunking gold myth: Inflation hedge or safe haven?, and stated that gold also was an unreliable safe haven investment because “gold is just too volatile. Indeed, the volatility is not much different than the S&P 500 volatility.”
Other research confirms these findings:
Harvey’s research had shown that gold works as an inflation hedge when looking at time spans in the decades or even hundreds of years. In almost all situations that investors are considering an investment in gold, their time horizons would not fit this type of strategy.
Credit Critics Conclusion:
Fact Check: “Gold is a Hedge Against Inflation”