Is gold a good inflation hedge?

Over multi-decade horizons gold has broadly preserved purchasing power. Over a single year the relationship is weak.

What is the real price of gold?

The nominal price deflated by the cumulative change in the price level over the period.

Why does gold fall when inflation is high?

Because a hot print can raise expected policy rates faster than expected inflation, lifting the real yield.

What is real yield and where do I find it?

Nominal bond yield minus expected inflation, cleanest as the 10-year yield against the 10-year breakeven rate.

Gold vs Inflation: Real and Nominal Returns

Gold at $1,800 rising to $2,400 over five years is a 33.3% nominal gain, but only about 12% in constant money at 3.5% average inflation.

Real yield, the nominal bond yield minus expected inflation, is the opportunity cost of holding a non-yielding asset.

Gold's reputation as an inflation hedge depends heavily on the start date chosen. Enter two dates and the calculator compares the change in the gold price against CPI over the same window, returning the real, inflation-adjusted change rather than the headline number.

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