Sebastian Duda/Fotolia
During the current recession equity markets have performed badly in terms of returns on investment. As a result investors have shifted their attention towards alternative assets. Gold has been one of the main beneficiaries. The same pattern occurred in past recessions. Gold is seen as a ‘safe haven’ for investors in a time of crisis. We can identify two commonly held beliefs which lead to this view:
■ Gold is perceived as a ‘real’ asset, as opposed to equities, which are perceived as essentially financial creations.
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