There is a significant and growing consensus among academics, independent researchers and asset allocation experts that gold is a hedging instrument and a safe haven asset.
Thus, many financial professionals, including GoldCore, now believe that gold should form part of investment and savings portfolios for reasons of diversification and financial insurance.
In this ebook you will find out about:
1. What is a safe haven?
2. What academic research underpins gold as a safe haven asset?
3. Independent research and asset allocation research that reinforces gold as a safe haven asset.
4. The historical evidence supporting gold as a safe haven asset.
Gold is used as a hedge against fluctuations in and the devaluation of currencies, particularly the U.S. dollar. There is a mistaken belief that gold is "quoted in dollars." This is not the case as gold is quoted in local currency terms throughout the world. The London AM and PM Fix prices are in U.S. dollars, British pounds and euros.
Given the importance of US markets and the dollar as the world’s current sole reserve currency, traders most frequently quote the US dollar price and for simplicity and ease financial media tend to quote the dollar price of gold.
While the daily price of gold is known by market participants and observers, what is less widely understood is how the gold price is determined and derived, where the price is sourced from, and how the contemporary nominal gold price compares to historical prices and importantly, to the price of gold adjusted for inflation.
Click here to download our 'Comprehensive Guide to the Gold Price'