Gold as an Investment Avenue: A Study
Year: 2025
Type: conference-paper
Abstract: The global investment landscape is constantly evolving, with various asset classes attempting todraw investor attention. Among these, gold has historically been viewed as a stable and securestore of value, often acting as a hedge against inflation and a safe haven during periods of financialuncertainty. This study seeks to explore the role of gold as an investment avenue, focusing on itshistorical performance, market dynamics, and its effectiveness in modern portfolios. By examiningboth the financial returns and the risks associated with gold investments, the study aims to providea comprehensive analysis of the precious metal's viability as an asset class.Gold has been a preferred form of investment for centuries, with its unique characteristics ofscarcity, divisibility, and universal value. The study investigates into the historical trends of goldprices, particularly during times of economic turbulence, geopolitical unrest, and financial marketinstability. The research highlights the behaviour of gold prices during major global events, suchas financial crises, wars, and market recessions, emphasising its role as a safe-haven asset.Furthermore, it explores the role of central banks and governmental policies, which significantlyimpact the price and liquidity of gold, influencing investor sentiment.A key objective of this research is to assess gold’s correlation with other asset classes such asequities, bonds, and real estate, with a focus on portfolio diversification. By analyzing the riskreturntrade-off associated with gold, the study presents a detailed comparison between goldinvestments and traditional financial assets. It also evaluates the potential for gold to act as aportfolio stabilizer, reducing overall volatility during periods of economic instability.
Authors: Kumar K R, Naveen, S. Shetty, Prameela
Institution: Poornaprajna Institute of Management
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7110914258
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