Is gold the best safe haven for investment?

In light of the expectations of many experts, economic institutions, and international banks, the US and global economies in general will slide into recession during the current year. with believing that gold is the most important investment tool in times of recession, the most important question arises. Is gold alone a safe haven for investment in times of economic crises, specifically recession?

Safe havens

Safe havens are usually symbolized by financial instruments that increase in value in times of recession and crisis, as they are used to hedge against risks, and investors resort to safe havens in an attempt to preserve their savings in unstable economic times.

Historically.. gold has been a safe haven

 Gold has been classified throughout history at the forefront of safe-haven assets, and gold prices have witnessed strong increases over the past period, as they returned again to levels of $ 2000 an ounce, with increasing fears of the global economy slipping into recession, as demand for the yellow metal increases as a main tool for hedging.  Against inflation, which has reached an all-time high, according to Raed Al-Khader, head of financial markets research at Equiti Group.

Al-Khader explained that the high demand for gold is not caused by fears of economic recession or high inflation only, but also by rising expectations of a continued decline in the US dollar in the coming period, as the markets are preparing for the US Federal Reserve to start changing its monetary policies and reducing the strong pace of raising interest rates that it adopted over the past year.  Consequently, the pressure on the performance of the US dollar in the coming period.

Gold is not the only safe haven for investment in times of crisis, but there are a number of safe havens that are in high demand, especially during economic recession, including:

Government bonds

 Since the occurrence of the financial crisis in 2008, government bonds have been on the top of the most important safe havens that people resort to in times of crisis, and the advantages of bonds compared to gold lie in the fact that they provide a return in addition to preserving their value.  Unlike gold, which retains its value only as an asset without return.