Gold Fell in September While Inflation Stayed a Worry, and China Kept Buying
Gold Fell in September While Inflation Stayed a Worry, and China Kept Buying
Fri 2 Oct 2026 | Podcast
The Numbers
Gold is usually described as an inflation hedge, yet it fell in September, a month in which inflation remained a concern. Gold pays no interest or dividend. A two-year US Treasury yield of about 4.8% is the income on offer elsewhere. China has now bought gold for 22 months in a row. Today's podcast looks at how those three facts fit together, and why a reserve-diversification motive and a personal income need are different questions.
My Personal Take
This morning I wrote that the 10-year SGS yield was 2.49%, and that I could not say how much of the S-REIT decline rates explain. I had been thinking of rates as a REIT and bond question. It took me a while to see that gold sits on the same scale, only with no income at all, so the 4.8% is what it gives up. The episode argues that rates were the stronger force in September. I have not tested that myself. A month in which US yields rose and gold rose with them would change my mind. 🦖
📺 YouTube: https://youtu.be/zQFgvEnapKQ
📩 Substack: https://investingiguana.com/p/why-holding-gold-is-costing-you-more
Not financial advice. Iggy's Forensic Compliance Standards apply.
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