Can gold stand out in the context of rising inflation?

Last week, US President-elect Joe Biden proposed a $1.9 trillion bailout package, coupled with the bailout package already launched in the United States last year and the massive easing of the Federal Reserve, the huge liquidity of the whole market has heightened inflation expectations.

In this case, assets that can hedge against inflation will become a popular choice for investors.

Gold, for example, has been a historical hedge against inflation.

Judging from the inflation-adjusted annualized returns of gold over the past 40 years, gold prices reached as high as 27.5% in 1980, while the lowest was 20.6% in 1985.

Although it seems that gold prices fluctuate a lot, the Duke University study shows that in the long run, there is a correlation between gold and inflation.

After Bitcoin's surge last year, the topic of gradually replacing gold has become a hot topic again.

The price of bitcoin doubled from mid-December to early January against a backdrop of rising inflation expectations, but then fell sharply, falling more than 20 per cent.

The huge fluctuation in the price of Bitcoin means great risk.

Stocks are certainly an option.

Adjusted for inflation, gold has earned an average of 2.2% a year since the 1970s, compared with an average of 8.4% for the s & p 500.

So, on average, stocks may also be good hedges against inflation.