NEW YORK, March 21, 2017 /PRNewswire/ -- A peer-reviewed new Journal of Investing paper by author Julian Van Erlach provides the most comprehensive explanation ever of how gold is valued. It features the best pricing model that is 92% accurate across 200 years including the Gold Standard. The author also holds the only patent 8,095,444 issued for the valuation of gold. The paper's theoretical gold valuation explanation and quantitative pricing model is indispensable for hedge funds, CIOs, investors and pension and endowment managers who are considering how to incorporate precious metals in their portfolio.
Until now, no finance professional has ever claimed to know how gold is valued; including Fed Chairmen.
Contrary to popular belief, gold does earn a real return based on the relationship of its total above ground gold stock to world real GDP. Fiat money supply growth exceeds real GDP and so loses purchasing power. Gold in fact gains purchasing power in terms of global goods and services. Moreover, the global price of gold has a direct relationship with changes in the expected inflation rate and inverse relationship with changes in the expected real per capita growth rate above or below the long term average of 2%.
Author Julian Van Erlach has published other peer-reviewed academic journal papers and holds multiple asset valuation patents which show how and why the value of gold moves in relation to the price-earnings ratio of stocks and bond yield.
Julian Van Erlach. Tel: U.S. 651-558-6242. JulianVanErlach@yahoo.com
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SOURCE Julian Van Erlach