Preserve Gold: Why people turn to gold during times of uncertainty
In 2023, investor allocations to gold reached an 11-year high, according to JPMorgan Chase & Co. Investment activity in the precious metal was fueled in part due to fluctuating markets, inflation, and economic uncertainty.
This shouldn’t be a surprise. In a rapidly changing world with complex geopolitical tensions, civil unrest, and technologies like AI reshaping society, people continue to turn to precious metals firms like Preserve Gold for investment opportunities.
Gold has intrinsic value. It’s not valuable just because the government says it is, like the dollar. Instead, gold is valuable because of its natural physical properties and universal recognition as a form of wealth, independent of any government or economy.
Gold has served a variety of purposes for many centuries, especially during periods when the economy is on shaky ground. It was the earliest form of currency and still has modern application in electronics and for industrial processes. There is also a finite amount of gold on Earth, which also contributes to its value. In mid-February 2026, the price of gold hovered around $5,050 per ounce, up more than 70% from early 2025 and more than 150% from 2021.
Here’s a look at some of the reasons gold is considered a valuable asset, particularly during times of economic uncertainty.
Reliable store of wealth
Paper currencies tend to lose value over time and, in many cases, have been outright replaced. The euro, for example, made more than 20 national currencies obsolete in Europe. Gold, meanwhile, has been a reliable store of wealth since it was discovered and first used to create jewelry, objects, and then currency. Unlike modern currencies, including the USD, its value is not negatively affected by market volatility, economic crises, or geopolitics. Rather, because it has historically been a safe-haven asset, the demand for gold—and its price—generally rises in these conditions.
Many investors view gold as a hedge against inflation. While their stocks, bonds, and other assets may decline in price during periods of economic uncertainty, gold offers a certain level of stability, backed by thousands of years of performance.
Gold prices can become volatile as a recession sets in, as investors sell their gold to cover their losses in other assets. The price of gold may drop in this case. However, the price usually rebounds and further increases the longer and deeper the recession persists. As inflation increases, the price of gold does, too.
Asset diversification
Because of how well it has performed historically and its low correlation with stocks and other assets, gold can help balance an investment portfolio during turbulent economic periods. While its price may decline during a bull market, it usually increases in bear markets.
Investing in gold with Preserve Gold during an uncertain economy can help offset losses from traditional asset classes and reduce portfolio risk. Preserve Gold also reduces investor risk by partnering with trusted depositories to provide secure storage and by waiving IRA storage and custodian fees for up to five years, depending on the starting investment size. In addition, the company offers a zero-fee buyback promise.
It’s not just individual investors who turn to gold when the economy falters. Central banks also tend to maintain significant stores of gold and typically increase their reserves when markets are down. Currently, the United States and several countries in the European Union hold the lion’s share of gold reserves in their central banks, with the US holding $682 billion in gold and euro-area countries holding $903 billion as of late 2024.
Historical performance
Not only has gold sustained its value for thousands of years, it’s also an attractive investment class during uncertain times due to its historical performance in past recessions. The COVID-19 pandemic helped drive this recent surge; from January to August 2020, the price of gold increased by 27%. Gold also significantly increased in price during the global financial crisis of 2008 as investors sought alternative, safe-haven assets to reduce their market exposure. Over two years through 2010, the price increased by 78%.
Gold also increased in price considerably after the US moved off the gold standard under President Richard Nixon in 1971. High unemployment, high inflation, and low economic growth contributed to the steady rise of the price of gold in the 1970s. It peaked at a then-high of $665 per ounce in January 1980. By 1999, it had dipped lower than $260 per ounce due to a combination of a strong dollar and central banks selling off some of their reserves, triggering an oversupply.
History, however, tends to repeat itself. Every significant decline in the price of gold has been followed by periods of high demand and price surges due to global events affecting market performance. In January 2026, gold crossed the $5,000 per ounce barrier for the first time in history. Experts expect gold to continue setting all-time price records through 2026.