Gold Price During a Financial Crisis - Guaranteed Safe Haven?

In times of economic turmoil, precious metals, especially gold, have always been considered the go-to commodity that people choose to invest in. It has somehow become widely accepted that tangible asset such as gold is the most secure and stable investment, which has in essence created this idea of a 'gold safe haven'. But is gold a guaranteed safe haven really?

Those opposed to this theory tend to argue that gold and precious metals in general aren't a reliable means to create wealth. A common reason stated is that gold and silver are only available in limited quantities and this leads to stifled liquidity and people not having enough currency to trade.

However, history very clearly suggests otherwise. When the gold price is tied to a currency, which is normally the case when things are good economically speaking, that price remains fairly stable. But in times of economic uncertainty, gold becomes no longer tied to a national currency and this results in dramatic changes in the gold price analysis. In fact, we've seen precedents of a sky-rocketing gold price during a financial crisis. And yes, that makes gold a guaranteed safe haven in times of fiscal volatility.

For the most recent examples of the behavior of gold during a crisis, or more specifically that of gold during a financial crisis, we needn't look further than the crash of 2008. In the four years leading up to 2008, prices doubled. And this increasing gold trend continued over the next four years, seeing the price double again.

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