InvestorQ : Why it is that gold tends to outperform in turbulent times?
Dilmini Mercia made post

Why it is that gold tends to outperform in turbulent times?

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Dhwani Mehta answered.
3 years ago
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If you look at the historical price of gold, it has typically outperformed during times of turbulence and uncertainty. The period between 1971 and 1979 was a period of tremendous economic and geopolitical turmoil. The Gold Standard had collapsed, Israel was fighting a series of wars in the Middle East, Saudi Arabia had imposed an oil embargo on the US, Iran was battling Iraq and Russia had invaded Afghanistan. It was during this period that gold rallied from $35/oz to $800/oz. The next period of gold appreciation was between 2006 and 2011 when a combination of the sub-prime crisis, the Lehman crisis and the European debt crisis made gold extremely valuable. Even if you leave aside these periods of outperformance, gold is best suited to hold value when there is political and economic uncertainty.

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