Gold as a "safe haven": what it means and what it doesn't

What "safe haven" means

A safe haven is an asset that many investors look for when markets or the economy are uncertain, in the hope that it will hold its value better than other assets. Gold is often named as one. In its report Gold as a strategic asset: 2026 edition, the World Gold Council (WGC) refers to gold's safe-haven status during periods of economic uncertainty, and describes gold as an asset that is no one's liability and carries no credit risk.

Keep in mind: the WGC is a gold industry body. Its data is useful, but it is not a neutral party, and its own report states that past performance is not necessarily indicative of future results.

What the data shows

• Global financial crisis: according to the WGC, while stocks, real estate and most commodities fell, the gold price rose 21% in US dollars from December 2007 to February 2009.
• Recent stock market sell-offs: the WGC says gold's performance remained positive during the sharp equity pullbacks of 2022 and 2025.
• Correlation: the WGC finds gold's negative correlation with stocks grows stronger when stocks fall sharply, though there are exceptions.
• Liquidity: the WGC says the global gold market is large and liquid, and its liquidity does not dry up even in times of financial stress.

What it doesn't mean

• Not "the price never falls". The WGC records that gold has risen close to 30% in a year (2010) and fallen close to 30% in a year (2013). Gold has also lagged other assets over medium-term periods.
• Not a steady income. Gold pays no interest or dividend. The WGC notes that investors depend on price rises to benefit.
• US-dollar data, not ringgit. The WGC figures above are in US dollars. The gold price in ringgit is also affected by the exchange rate. The GAP terms say Public Gold sets its price taking into account world and local gold markets and currency (clause 1.10).
• Not predictable timing. Buying because of frightening headlines can mean buying after the price has already risen. No one can predict the direction of the price with certainty.

What it means for ordinary savers

For institutional investors, "safe haven" is discussed at the level of a whole portfolio. For a household, the first need in a crisis is cash for daily spending. BNM's guide is an emergency buffer of three to six months of expenses, and PIDM lists savings accounts, fixed deposits and ASNB as places to keep it. Gold can be considered after that, as part of long-term savings. See also gold as an emergency fund.

Risks and costs

• Price risk: the gold price can fall sharply, including over several years. Public Gold's terms state there is no guaranteed profit.
• Currency risk: movements in the ringgit affect the ringgit gold price.
• Spread: the difference between the buying and buy-back price. See how to read prices and spread.
• Gold Premium and cancellation charges: under the GAP terms (clauses 2.3, 1.17, 2.7 and 3.7).
• No PIDM protection for gold-related products or accounts.

Quick FAQ

Does the gold price always rise in a crisis?

No. The WGC says gold has tended to do well in periods of systemic risk, with a few exceptions. That is not a guarantee for every crisis.

Why do ringgit gold price moves differ from the news?

Most international news and data use US dollars. The ringgit price is also affected by the ringgit's exchange rate against the US dollar.

Should I buy a lot of gold when there is a crisis?

Panic buying can mean buying at a high price. Decide what share of your long-term savings suits your means, and don't use your emergency money.

Is my GAP gold protected like a bank deposit?

No. Under the GAP terms, GAP is not a financial product or a deposit, and PIDM states that gold-related investment products or accounts are not covered by deposit insurance.