An unexpected outbreak of the latest military conflict between Israel and the Palestinians on October 7, 2023 was once again sending investors in search of “safe-haven” assets. But what are the historical characteristics of a safe-haven asset? • Universal Acceptability of Value. The value of a safe-haven asset is universally accepted across all cultures and civilizations. For example, gold is recognized as a safe-haven asset in any culture and on any continent. • Limited or Controlled Supply. The supply of a safe-haven asset cannot be increased by pressing a button on the central bank’s computer keyboard. Its supply is either…...
Physical Gold, Paper Gold, Digital Gold: Will Scarcity Finally Rule in a New Safe-Haven Asset Paradigm?
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