Honors Theses and Capstones

Date of Award

Spring 2023

Project Type

Senior Honors Thesis

College or School

PAUL

Department

Finance

Program or Major

Finance

Degree Name

Bachelor of Science

First Advisor

Stephen Ciccone

Abstract

The world of investing is rapidly changing as technologies advance. In the past few years especially, we have seen many investors shifting toward decentralized digital money, or what is known as cryptocurrencies. Even with these new asset classes coming out, there has always been one commodity that has stuck around. Gold has been used as a store of value for millenniums. Investors tend to rely on gold because it’s believed to be a safe-haven asset, in times of economic uncertainty. This paper aims to determine whether or not this traditional mindset is still effective in today’s ever-changing investment environment. To solve this question, three different periods of heightened inflation were analyzed. Based on the result from this thesis, during times of heightened inflation gold hasn’t always proven to be the safe-haven asset that it is regarded as.

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