Why Gold Is Considered a Safe-Haven Asset
Gold has earned its reputation the hard way. Not through marketing, but through repeated moments when people wanted an asset that could hold value even as the rest of the financial system felt shaky. When banks face stress, when currencies wobble, when markets freeze up and liquidity disappears, investors tend to reach for gold. It is not magic, and it does not remove risk. Still, gold’s track record across different types of crises helps explain why it is commonly treated