Hints and tips:
...In the Barsky-Summers model, the uses of gold swing between “monetary gold”, ie those 400 oz bars, and “non-monetary gold”, ie wedding rings or watch cases....
...Many of these new enterprises, as my colleague John Gapper noted last week, hope to make a profit (eventually)....
...However, the Summers-Barsky model can be reasonably incorporated into a multi-year investment strategy. When real returns are high, the fiat-currency price of gold will stagnate or decline....
...It is one reason, says Barsky, that people are putting increasing faith in alternative therapies....
...Mr Palmedo is one of the adherents of what gold people call “Summers-Barsky”, a theory of the relationship between gold and real returns on investment developed by two Harvard professors in 1985....
...I went to see Mr Barsky to discuss this interpretation....
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