Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

It's not delivery. It's the grocery store.

Dec 5, 2019

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Tech
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly
Download
HTML Embed
HTML EMBED
Click to Copy
Have something you want Kai to explain? Let us know!

What do tanking gold prices say about the economy?

Adriene Hill Dec 9, 2013
Share Now on:
HTML EMBED:
COPY

Not that long ago, gold was trading near $1,900 an ounce. Today it’s fallen to just above $1,200. 

What’s that tell us about our economic confidence? Andreas Hauskrecht, a professor at Indiana University’s Kelley School of Business, is adamant about the answer. Not much. “Gold is the worst indicator for how people feel about the economy,” he says.

But if we can’t say what falling gold prices mean, we might be able to answer why gold prices are falling.

One theory is that rising interest rates are luring investors to other investments.

Another theory is that we’re a little less freaked out about the economy than we have been.“Gold has traditionally been thought of as something that is a disaster protection,” says Campbell Harvey, a finance professor at Duke University. “Now that the economy is returning to a more normal situation, that disaster demand is evaporating effectively.”

But his research finds gold isn’t the great hedge that investors think it is. Prices, he says, are just too volatile.

Fall of the Berlin Wall
Fall of the Berlin Wall
The financial lessons of Germany's reunification 30 years ago.  
Check Your Balance ™️
Check Your Balance ™️
Personal finance from Marketplace. Where the economy, your personal life and money meet.

You + Kendeda =
Triple the Impact!

 

Give NOW to make your gift go three times as far!