Is gold a commodity or a monetary asset?

Some people regard gold as simply another commodity. However, it can be argued that gold performs differently to commodities in general and more like a monetary asset. Some of the reasons for this are outlined below: • Gold does not typically move in step with the broader commodities market, especially during times of financial uncertainty and geopolitical turbulence. It is at these times that gold has often outperformed other assets, including a broad commodities index. • While the US may have abandoned the gold standard in 1971, central banks maintain huge reserves of physical gold. Indeed, according to the Refinitiv Gold Survey 2019, in Q4 of calendar 2018 central bank buying recorded its la...

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