Gold functions as a safe haven investment during periods of economic instability
Extensive empirical and conceptual research supports the claim that gold functions as a safe haven investment during periods of economic instability, consistently demonstrating defensive properties and low correlation with risky assets during crises.
The vast majority of the retrieved literature (Papers 0, 1, 2, 4, 5, 6, and 7) overwhelmingly supports the widely accepted economic premise that gold acts as a safe haven asset during periods of uncertainty and financial distress. While Paper 3 cautions that gold's behavior is complex and can be influenced by other market dynamics, the overwhelming weight of evidence clearly favors the claim, making SUPPORTED the correct verdict.
Jéssica Paule-Vianez, Camilo Prado‐Román, R. Gómez-Martínez. Economic policy uncertainty and Bitcoin. Is Bitcoin a safe-haven asset?. 2020. https://doi.org/10.1108/ejmbe-07-2019-0116
Paper 0 establishes that gold acts as a safe haven asset whose returns and volatility increase during times of economic policy uncertainty.
Rafael Ivo Jonatan, Rendra Arief Hidayat. Bitcoin, LQ45 Index, Mutual Fund NAV, and Mining NPM Impact on Gold as Safe Haven. 2025. https://doi.org/10.70062/globaleconomics.v2i4.405
Paper 3 notes that gold does not always function absolutely as a safe-haven asset, as its pricing and role remain complex and influenced by other market instruments.
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Charu Upadhyaya. Safe Haven or Speculative Asset? A Conceptual Analysis of Gold, Equity Markets, and Cryptocurrencies During Economic Uncertainty. 2026. https://doi.org/10.36948/ijfmr.2026.v08i04.83342
Paper 1 notes that gold has traditionally and conceptually been considered a strong defensive safe-haven asset due to its stability and low correlation with risky assets.
Arif Saldanlı, Batuhan Medetoğlu, Fatih Günay, Yusuf Bahadır Kavas. Risk Perception under Uncertainty: A Behavioral Analysis of Safe-Haven Asset Return Responses. 2026. https://doi.org/10.30784/epfad.1934878
Paper 2 finds that gold demonstrates significant asymmetric return responses to increased levels of market and economic uncertainty.
Muhamad Zaenal Asikin, Lina Sulistiawati. The Meaning of Psychological Calm for Gold Investors in the Midst of Global Uncertainty: A Phenomenological Study of Safe Haven Assets. 2026. https://doi.org/10.59261/jmef.v4i1.189
Paper 4 shows that gold functions as a psychological safe haven and symbol of stability that helps reduce financial anxiety during global economic instability.
William Ben Gunawan. Revisiting gold as a stable, safe haven: Trends, insights, and paths to sustainability. 2026. https://doi.org/10.61511/ecoprofit.v4i1.2026.3525
Paper 5 concludes through a literature review and bibliometric analysis that gold remains the most consistently supported safe haven asset during market stress and crises.
Zhiwei Wang. Safe Haven vs. Non-Safe Haven Assets An Analysis of Gold and Fuel Oil Futures During Pre and Post COVID Periods. 2025. https://doi.org/10.54254/2754-1169/2025.22183
Paper 6 illustrates gold's safe-haven resilience through its steady price rise and decreased volatility during the COVID-19 pandemic recession.
Amalendu Bhunia, Amit Das. Safe haven or risky bet? A study of gold prices during Indian stock market volatility. 2025. https://doi.org/10.20448/economy.v12i2.7726
Paper 7 confirms gold's safe-haven role by demonstrating its negative correlation with equities during extreme market downturns and crises like 2008 and 2020.
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