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"Beware the Gold Bubble"

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brian0918

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CNN article claims "the fundamentals" are against gold, cites gold mining diminishing the price of gold, and the reduced sale of gold for industry and jewelery over the last year. It also asserts gold is not a good hedge against inflation:

But he's not a fan of gold, which, he says, basically tracks inflation over the long term, leaving you a loser after taxes. "Gold is not a sensible core holding," he says.

Like Rogers, Arnott thinks common commodities are a smarter choice. He suggests iShares GSCI (GSG), an ETF that tracks the broad S&P commodities index. Arnott also likes using Treasury Inflation- Protected Securities, real estate investment trusts (REITs), and emerging-market bonds, which you can buy through the PowerShares Emerging Market Sovereign Debt ETF (PCY). Many developing countries are commodities producers, so if U.S. inflation kicks in, their currencies will gain strength and their debt will rise in value.

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