Whenever the financial world is crashing out (think COVID-19 recessions, the Global Financial Crisis, and The Great Depression), there’s always been one asset class that rises in value.

It’s not the sharemarket… it’s not property and it’s certainly not crypto.

Gold, unlike the stock market, is considered a ‘safe-haven’ asset. Despite sounding like a Bruno Mars song title, gold has been a universally accepted store of value for over 2,500 years - even during times of economic uncertainty. 

It’s wild to think that a shiny metal valued by ancient emperors and queens over thousands of years ago still retains so much value in today’s world. But there are solid reasons why gold remains the G.O.A.T investment for so many people.

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‍Historical performance of gold in economic crises ‍

🏠 Global Financial Crisis (2008)

Triggered by the collapse of major financial institutions in America, the world fell into the deepest recession since World War II during the Global Financial Crisis. 

Australia was lucky to avoid the worst of it (thanks mining industry), however, there was no avoiding the crash of share markets worldwide.

By comparison, gold surged around 25% - from around $800 per ounce in early 2008 to over $1,000 by early 2009. Investors were drawn to gold’s intrinsic value, which held up against the devaluation of global currencies. 

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🤧 COVID-19 (2020)

The pandemic wasn’t just a crisis because we suddenly had to be in lockdown and alone with our thoughts 24/7 (it was dark). The widespread shutdowns, restrictions with travel and trade, and massive government spending to stabilise the economy led many countries into an economic crisis (aka a recession). 

During this time, the stock market moved around faster than a cat chasing a laser pointer. At the same time, the price of gold increased about 25% to an all-time high of $2,000 per ounce by August 2020. While the markets were shaking, investors used gold as a way to hedge against economic uncertainty.     

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💱 US Trade Wars (2025)

Now we’re starting to see this pattern emerge again in today’s economy. President Donald Trump rocked the global financial boat with a tariff announcement for all of America’s trade partners. Spoiler alert: none of the trade partners reacted positively, and investors have been worried that rising inflation and escalating trade wars may lead to another recession. 

So you guessed it, stock markets are freaking out, and the top 3 performing ASX200 companies from March were all in the business of gold mining. 

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What makes gold so popular?

⭐Everyone understands and accepts gold as a valuable asset. It’s not tied to any particular country like money. 

⭐Gold is also a finite resource. When the economy slows down, central banks can sometimes print extra money which temporarily reduces the value of its currency. Since banks can’t print extra gold, the purchasing power of gold remains strong during times of high inflation and devalued currencies. 

⭐When investors feel uncertain about the future, they typically feel more risk adverse. As a result, investors are more inclined to seek tangible assets to buy. Gold feels real (because it is real), which contributes to its value. 

Whether it’s the Great Depression, the Global Financial Crisis, or a global pandemic, investors have turned to gold as their ultimate financial comfort blanket. It's stood the test of time because when currencies wobble and markets throw tantrums, gold keeps its cool.

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