A Safe Haven
Gold is considered a safe haven asset, not just because it acts as an inflation hedge, but also because gold can provide stability during times of geopolitical tension and economic downturns. Gold is often negatively correlated to the general markets, which is highlighted by the comparison of overall returns between the S&P 500 and gold during times of economic crisis and global conflicts.
The Gulf War
Aug 1990 – Mar 1991
Dot-com Bubble
Mar 2000 – Mar 2001
9/11, Iraq War Begins
Sep 2001 – Dec 2003
Great Recession
Oct 2007 – Feb 2009
Eurozone / Greek Debt Crisis
Jan 2010 – Oct 2011
Covid-19
Jan 2020 – Aug 2021
Russia Invades Ukraine
Feb 2022 – Apr 2023
Israel-Hamas War
Oct 2023 – Dec 2024
