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Gold usually dips before making substantial gains in financial crises

Published 9 August 2024

Nitesh Shah
Nitesh Shah

Head of Commodities and Macroeconomic Research, WisdomTree Europe

@NiteshShahWT

Key Takeaways

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Olympians equate gold with being the best performer in an environment of high pressure. So should investors. Gold is anti-cyclical and considered a safe-haven asset, performing strongly in times of crisis. However, the results are not instant, and gold has been known to dip before sprinting to the photo finish.

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Source: WisdomTree, Bloomberg. In USD. 22 May 2008 to 2 February 2009, using daily data. Gold is proxied by the LBMA Gold Price PM Index and S&P 500 is proxied by the S&P 500 Gross Total Return Index. Past performance is not indicative of future results. You cannot invest directly in an index.

Figure 3: Average daily trading volumes of major assets in US dollars

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About the contributor

Nitesh Shah
Nitesh Shah

Head of Commodities and Macroeconomic Research, WisdomTree Europe

@NiteshShahWT

Nitesh Shah is a seasoned financial professional with over 24 years of experience in research and investment strategy. As Head of Commodities & Macroeconomic Research at WisdomTree Europe, he leads market analysis and insights across asset classes, with a focus on commodities and exchange-traded products. Previously, he held roles at Moody’s, HSBC Investment Bank, The Pension Protection Fund, and Decision Economics, building expertise in market analysis and strategy. Nitesh earned a master’s degree in International Economics and Finance from Brandeis University and a bachelor's in Economics from the London School of Economics. His insights are frequently featured in financial media, and he is a sought-after speaker at industry events. He also hosts the ‘Commodity Exchange’ podcast, where he discusses trends shaping global markets. Passionate about guiding investors, Nitesh provides actionable insights to help them navigate complex financial landscapes.

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