Why does gold go up in times of geopolitical turmoil? Do refugees actually convert their wealth to gold, or does it just go up because most traders think it should? A kind of trading Schelling point.
Probably because geopolitical turmoil often causes economic recessions in which: 1. company earnings fall 2. demand for more useful commodities falls 3. corporate bonds default 4. Governments print money Gold is going up because currency is going down.
