NEW YORK ( TheStreet) -- With gold's big decline over the last two years, many may be searching for answers about what's to come. And suggestions abound -- some hinging on the notion gold can protect your portfolio from inflation.In an environment where many fear quantitative easing (QE) will drive inflation higher, it's not surprising to hear gold bugs offer similar advice: Don't sell -- hang on and profit when QE-driven inflation increases gold's value. In our opinion, however, there are severe problems with this thesis. Here are two key ones: Quantitative easing isn't inflationary, it's dis- or deflationary, and gold isn't a reliable hedge against inflation.
Why Ben Bernanke's QE Is No Stimulus for Gold
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.