Gold: A Safe Haven or Risk-On Trade?
The arguments for holding gold in a portfolio are compelling today. The first reason is that investors prefer hard assets in a crisis period. Historically, in a crisis periods, real assets tend to hold their value better than financials assets. This is the safe haven value of gold. As world financial assets crumble, many hope that gold will remain standing. The second reason for holding gold today is for its currency-like store-of-value quality. As if it wasn’t evident before the coronavirus crisis, central banks and governments have no