Chris Colvin is a Senior Lecturer in Economics, Queen’s University Belfast and Philip Fliers is a Lecturer in Finance, Queen’s University Belfast.
With global financial markets in disarray, many investors are turning to classic safe havens. Gold is trading above US$1,750 (£1,429) per troy ounce, which is the standard measure – more than 15% above where it started 2020.
Even after a strong rally since March, the S&P 500 stock market index is down nearly 10% over the same period.
Gold confers familiarity during downturns. Its returns are uncorrelated with assets like stocks, so it tends to hold its value when they fall. It is also a good way of avoiding currency devaluation. Continue Reading →