We've previously discussed why one might want to own gold, but another question involves timing one's entry into that volatile market.
To that tricky question, Seeking Alpha contributor Ploutos proposes an intriguing approach based on calculating "gold yield.".
I find the approach elegant and relevant, and look forward to seeing how this method stands the test of time.
Listen on the go! Subscribe to the SA for FAs podcast on iTunes, Stitcher and SoundCloud (click the highlighted links).
Seeking Alpha contributor Ploutos proposes an intriguing approach to timing one's purchases of gold based on calculating "gold yield," which cleverly adapts earnings-yield analysis to the yellow metal.
This podcast (3:58) argues in favor of using gold yield as a rough guide, but cautions advisors to look out for further validation of this formulation over the coming decades.