30/4/2025, 12:00:05 pm

The golden illusion: Know the risks behind gold’s safe haven image

Gold is often seen as a safe-haven asset, but it carries risks. Historical data shows gold delivered 10.73% annualized returns over 15 years, less than equities' 12.49%. Gold's maximum drawdown was 29.47%, lower than equities' 38.11% during COVID. Gold's volatility is 14.95%, slightly less than equities' 17.11%. Its negative correlation with equities makes it a good diversifier.