Gold
A precious metal widely used as a store of value, inflation hedge, and safe-haven asset in financial markets.
What is Gold?
Gold is a precious metal with a history of serving as a monetary standard and store of value spanning thousands of years. In modern financial markets, gold is traded as a commodity and financial asset, valued for its role as an inflation hedge, safe-haven investment during economic and geopolitical uncertainty, and portfolio diversifier with low correlation to equities and bonds. Gold can be held through physical bullion, gold ETFs (such as GLD or IAU), gold mining stocks, futures contracts, or allocated accounts. Unlike stocks and bonds, gold generates no income — its return depends entirely on price appreciation driven by demand, supply, and macroeconomic conditions.
Example
During the 2008 financial crisis, gold prices rose approximately 5% while the S&P 500 fell 37%, demonstrating its safe-haven properties. Over the 20 years from 2003 to 2023, gold returned approximately 9.5% annually — comparable to equities — though with dramatically different return patterns. Gold crossed $2,000/oz for the first time in August 2020 and reached all-time highs above $2,400/oz in 2024.