Gold has taken it on the chin this year, while materials have had steady gains. I realize gold is taking a breather after a long 12 year upswing, and should respond over the next decade as QE continues.
But are materials ETFs a better short term protection for hedging against the gold decline and still provide protection for long term inflation? In particular, I mention VAW and XLB. They have had 20% gains and 2% dividends in 2013 while gold is down 30% with no dividend. They are expensive with P/E of 17, and climbing.
Long term, emerging markets will probably provide the biggest gains, but short term, materials ETFs may help calm my indigestion until gold bottoms.