The Strange Behaviour of Gold during Crises

Dimitri Speck

Chapter Chapter 3 in The Gold Cartel, 2013, pp 8-15 from Palgrave Macmillan

Abstract: Abstract To begin with: gold is not a good investment. Over many decades its price remains the same, while real estate, bonds and stocks yield income or rise in price. Even in times of moderate inflation, contrary to conventional wisdom, gold often does not protect against losses in real terms. It is quite different when there are substantial risks to monetary stability. That is when gold’s safe haven function comes to the fore, as it is neither dependent on a promise to pay, nor possible to inflate away. Gold, therefore, provides protection in financial crises harbouring rising default risks and when money is debased markedly. This has also been examined statistically in the context of past events.3

Keywords: Stock Market; Central Bank; Hedge Fund; Safe Haven; Price Decline (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-28643-7_3

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DOI: 10.1057/9781137286437_3

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