Asset Movements During the Economic Crisis:

Abstract

This paper aims to predict the trend of gold and housing prices after COVID-19. The paper examines the trends in the two assets during the economic crisis in Korea in 1997 and financial crisis in the US in 2008. Then, it uses various qualitative and quantitative metrics such as the government response during the crises, consumer behavior, and interest rates to analyze those trends and aims to use those to predict the movement of housing price and gold price during/after the COVID-19 crisis. I spotted the correlation between the shifts in interest rates and consumer behavior in regards to change in housing price as well as gold price. Therefore, the paper concludes that lowered interest rate increases gold price and housing price because consumers prefer assets like gold because it maintains its value and houses rather than rents as the lowered interest rate induces lower-risk loans. The research includes more details as to how such behavior is brought about to the consumer.