The World Gold Council (WGC) says the benefits of certain portfolio hedges “came into clear focus” during the 2008/9 financial crisis, the subsequent European sovereign debt crisis, the 2018 December stock market pullback and the most recent Covid-19 pandemic. According to the council, “many tail hedges work well during crises”, if timed properly, but are technically considered complex investment, and can be expensive to hold systematically.
