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Is gold truly a solid hedge against inflation? Not quite, at least according to a study by Credit Suisse and the London School of Economics (LSE). They looked at the performance of gold and stocks from 1900 to 2012 and concluded that gold prices are too volatile and that stocks enjoy better returns. Whereas an investor exclusively invested in gold earned an annual return of 1.1 percent over the same period and suffered several heart attacks in the meantime because of the high volatility, a stock investor would have enjoyed a remarkably higher return at an average annual (real) return of 5.4%. Moreover, gold does not earn a yield, contrary to stocks.

Another conclusion from the same study is that stocks are not a sound inflation hedge. Gold, of course, is the quintessential inflation hedge. Although … MC Investments seems to think otherwise.

A year ago, this investment boutique wrote in a special publication that gold should no longer be considered a safe haven. Their evidence? Let me cite their line of reasoning: “Since mid-2009 gold has underperformed the S&P 500.”

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