Is gold correlated to other metals like silver and copper?
Gold exhibits a positive correlation to some of the other metals, particularly silver. At the end of H1 2008, the correlation coefficient between gold and silver was 0.78. The correlation to other commodities is weaker. For example, the correlation coefficient between the GSCI and gold was 0.52 at the end of H1 08. Gold is also positively correlated with inflation over the long-run. However, it has low correlation with mainstream financial assets, like stocks and bonds, underpinning its role as a portfolio diversifier.
