Gold, bitcoin, and portfolio diversification: Lessons from the Ukrainian war

Kim Oosterlinck, Ariane Reyns and Ariane Szafarz

Resources Policy, 2023, vol. 83, issue C

Abstract: Evidence from the 2022 Ukraine war suggests that, for diversification purposes, gold and bitcoin are complements rather than substitutes during crises. Precisely, this paper shows that (i) gold is a diversifier for European stocks, oil and T-Bills, and a hedge for US stocks, while Bitcoin is a diversifier for all the assets, and (ii) since the outbreak of the war, gold is a safe haven for both stock markets, but its correlation with oil increases, while Bitcoin has the opposite pattern. Bitcoin diversifies the oil risk better than gold does. Meanwhile, the gold/bitcoin correlation drops during the war.

Keywords: Bitcoin; Gold; Diversification; Safe haven; Hedge; 2022 Ukraine war (search for similar items in EconPapers)
JEL-codes: E44 F65 G11 G15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Gold, Bitcoin, and Portfolio Diversification: Lessons from the Ukrainian War (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:83:y:2023:i:c:s030142072300421x

DOI: 10.1016/j.resourpol.2023.103710

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