0ac067a5b84818ad0bf295203eab497a_24c0148e63b86852800c5fb572becea7 - Investment in Gold vs the New York Stock Exchange Determined By Inflation By Jeremy


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Investment in Gold vs. the New York Stock Exchange, Determined By Inflation By Jeremy Introduction Investment in various options is a confusing as well as a critical decision with a variety of options available for investments and each one yielding a different return subject to different market conditions. From gold exchange-traded funds (ETFs) to gold stocks to buying physical gold, investors now have several different options when it comes to investing in the royal metal. But what exactly is the purpose of gold? And why should investors even bother investing in the gold market? Indeed, these two questions have divided gold investors for the last several decades. Apart from Gold, investment in stocks is also a popular investment opportunity. Investing in stocks can be tricky business. In fact, it's best to treat all of your investment pursuits as a business. With a large number of people investing in stocks, it is considered a good alternate to traditional investments such as gold. However it too has certain question marks on it. The uncertainty, frauds etc have prevented many potential investors from investing in stock markets. New York Stock Exchange being the world’s largest stock exchange is another credible option for investments. However the major concern of ours is to see the impact of Inflation on the investments in both these alternates. To help answer this question, we will determine the relationship between these investment options and the inflation through a detailed study of the past records. Majorly findings indicate that the relation between the Investment in gold/NYSE is quite strongly related to the inflation. In the paper that follows, we will explore these findings in greater depth. Following presentation of our data source and methodology, we will showcase our findings and the models used to produce them. To conclude, we will discuss our findings’ implications and potential directions for further inquiry. Data Source The data for all three variables- the gold prices, NYSE Index and the inflation have been collected for the past 40 years from the following sources: Inflation: Gold Price: NYSE:
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Methodology To formally compute and assess the relationship between gold price, the NYSE, and inflation, we used a combination of descriptive statistics, analysis of variance, and linear regression. Following preliminary data cleanup using Microsoft Excel, we used STATA to perform these aforementioned tests, model estimates, and any associated visualizations. Literature Review This section reviews the theoretical literature.
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