International Courant
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Gold and TIPS have an identical portfolio operate, to hedge in opposition to surprising inflation or greenback depreciation. The difficulty is that purchasing inflation insurance coverage from the US federal authorities is like shopping for shipwreck insurance coverage from the purser of the Titanic. After the huge growth of US authorities debt through the COVID epidemic, TIPS and gold diverged. The divergence reached an all-time document July 20 (gold is $778 increased than the TIPS yield would predict). The value of catastrophe insurance coverage in opposition to the US greenback retains rising.
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Gold’s divergence from Treasury Inflation-Protected Securities at a document
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