Gold and TIPS will trade differently. If I had to pick just one trade, I would choose the inflation breakevens because they are a more "pure" way to play inflation. Gold is a derivative of investors' fears of inflation (actually - fear of low real rates).
But I have them both. So, it's like asking me which of my children I like better. I can't do it. They are all special. :)
How about gold vs tips? Which one is better for inflation trades in your opinion?
Good evening Sakura,
Gold and TIPS will trade differently. If I had to pick just one trade, I would choose the inflation breakevens because they are a more "pure" way to play inflation. Gold is a derivative of investors' fears of inflation (actually - fear of low real rates).
But I have them both. So, it's like asking me which of my children I like better. I can't do it. They are all special. :)
Have a great night,
Kev