Gold as a Safe Haven against the Equity Investment in Emerging and Developed Economies

Abstract

The recent global financial crisis has created the interest in investment in gold. During the recent financial crisis of 2008, major indices of world fallen sharply by many percentage points. Investors all over the world lost the value of investment which created the interest among the researchers and investors all over the world to find an investment option which can save their portfolio value during the time of turbulence. Among various assets, gold is a known for its hedge property against inflation and currency devaluation. Investment in other assets do not help to save the investment value if they have industrial usage; during the recession their demand decreases which in turn causes reduction in their value. This increased the interest to check whether gold is also hedge or safe haven against the equity investment in the major markets of the world. This research project analyse and evaluate the gold as an investment option in various global markets on different parameters and compared it with the equity investment in different markets in the world.