Chart courtesy of www.StockCharts.com
Because inflation expectations are rising, gold bullion, as depicted by the streetTRACKS Gold Trust Shares (GLD), is trending higher to new alltime highs. That's typical in a weak dollar climate. Unfortunately, GLD is highly volatile and it doesn't pay any interest.
The good news for conservative investors is that because Treasury Inflation Protected Securities (TIPs) are rising in tandem with gold bullion (see chart), TIPs offer a more conservative hedge against inflation combined with the bonus of a dividend payment (which is quite low at present) attached.
The most popular TIP ETF is the iShares Barclays TIPS Bond Fund, symbol TIP.
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