Gold is increasingly seen as a safe haven asset amidst economic uncertainty, outperforming stock markets significantly over the last year and even achieving record highs, projected to reach between $4,000 to $5,000 an ounce. Its historical value retention highlights its role as a hedge against inflation and a weakening dollar. However, investors should consider the inherent risks and maintain a diversified portfolio, with gold allocation suggested at 5-15%.

In circumstances where market confidence is waning, there is a noticeable flight to safety, with investments shifting towards gold and other stable assets. Economists suggest gold is acting as a safe haven during economic turmoil.