This study reassesses gold’s role as a portfolio diversifier in a traditional stock–bond allocation.

The evidence confirms that modest gold exposure reduces loss probability, expected loss, and downside volatility.

The authors show that adding low-volatility equities improves defensiveness without sacrificing returns, especially over longer horizons.

A balanced mix of defensive stocks, bonds, and a small gold allocation can meaningfully reduce capital losses, though no asset serves as a perfect safe haven.

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