Gold is a good investment when bonds have negative yields
Gold does well when real rates are negative. Given inflation is positive today and real rates are negative in nominal and absolute terms, gold will do very well. Unsurprisingly, gold prices are highly correlated to the percentage of government bonds trading with negative yields.
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With gold having a stable monetary position in the world due to it being one of the most valuable natural resources, there's no lack of demand. With its value, people like to use gold as a placeholder or substitute for cash. Many governments also place their money into gold. Many countries have gold reserves; America has fort Knox, the UK has the Bank of England.  If the government bonds trading suffers, this only increases the value of gold since an economic decline will only increase its worth. This makes gold a good investment because when the economy suffers, the gold rate is high. It allows for people to have a monetary safety net if the economy takes a hit or their other investments fail. Gold, with how its seen in our world, will always have worth.
Many governments have gold reserves at their disposal due to it having monetary value and strength even when the countries own monetary system might be weak. However, gold is an antiquated resource. Its value is completely derived from historical traditions and social constructs. Practically, gold holds no intrinsic use, and its value is derived solely from its rarity. Furthermore, it does not contribute to economic growth, so personal investment in gold does not help the economy.
[P1] The government invests in gold when bonds are bad to try and mitigate a heavy loss.