Central bank buying is seen as a central plank of the investment rationale for gold. Gold's been on a sensational run, but the only thing it can't be called is an inflation hedge. According to the global investment returns yearbook presented on Tuesday by professors Elroy Dimson, Paul Marsh and Mike Staunton, gold's return has been negative in 13 of the 28 years in which inflation has exceeded 3%. The annualized return, after inflation, is just 1.3% since 1900, though it is 4.7% in the 54 years since the U.S. liberalized exchange rates. Gold (GC00) was steady on Tuesday after climbing over $5,300 an ounce on Monday. ... (full story)