It comes as no surprise that gold is continuing to rise today, reaching 1,225.60.
After all, oil prices are down from triple digit highs from summer 2014 at around $30 per barrel, global stocks are officially in bear market territory, China’s economic slowdown and cash position looks shaky, and Britain’s future in the European Union looks uncertain and it’s killing the pound.
Basically, globalisation is collapsing around us, and it looks pretty crappy to be an investor right now.
But gold is seen as a haven for cash. It doesn’t pay a coupon like a bond, and it doesn’t pay a dividend from a stock, but it does mean you own ounces in a physical precious metal that you can hold onto.
A spike in the gold market usually means investors are worried about the state of more volatile asset classes like stocks or bonds.
And this chart from Vincent Zoonekynd and his team at Deutsche Bank this week summarises perfectly how gold is keeping investors afloat while a majority of asset classes are swinging back and forth or cratering when it comes to returns:
NOW WATCH: Watch Martin Shkreli laugh and refuse to answer questions during his testimony to Congress
Business Insider Emails & Alerts
Site highlights each day to your inbox.