Gold vs Cryptos: Safe Havens in Tough Times

You're probably wondering if gold or cryptocurrencies can save you from tough market times. This study looked at their safe-haven and hedging abilities during events like the COVID-19 pandemic and geopolitical risks. They checked data from 2013 to 2021 every day. Guess what? Neither gold nor cryptos were great at protecting against pandemics. But gold, Bitcoin, and Ethereum did offer some safety during geopolitical shocks. When markets were super down (bearish) or up (bullish), gold was a strong safe-haven against low and high market volatility caused by infectious diseases.

On the other hand, Bitcoin and Ethereum were only strong safe-havens against low volatility when the market was super down. Gold also did a good job hedging against major geopolitical events, while cryptos weren't that great. So, gold seems like a strong safe-haven overall, while cryptos' abilities change with the market. Investors and supervisors should know this when deciding how to use gold, Bitcoin, and Ethereum during both good and bad market times.

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