Gold Hasn’t Delivered During the Iran Crisis. What Investors Should Consider Instead

Gold has underperformed during the Iran conflict, giving back much of last year’s gains and behaving more like a risk asset as its beta versus the S&P 500 has risen to about 0.70 — the highest in over five years. That higher correlation reduces gold’s effectiveness as a crisis hedge, prompting the author to suggest investors consider diversifying beyond gold. Bitcoin (around $68,000) and energy/commodity plays have performed better as hedges in this episode, while bonds remain volatile after a weak March. The piece views the pullback as a possible buying opportunity for investors who can tolerate higher beta, but advises others to consider crypto, oil/gas, or bonds as alternative portfolio ballast.