FN ISI Export Format VR 1.0 PT J TI Is gold a safe haven? International evidence AF Baur, Dirk G. McDermott, Thomas K. AU Baur, DG McDermott, TK SO Journal of Banking & Finance SN 0378-4266 VL 34 BP 1886 EP 1898 PY 2010 AB The aim of this paper is to examine the role of gold in the global financial system. We test the hypothesis that gold represents a safe haven against stocks of major emerging and developing countries. A descriptive and econometric analysis for a sample spanning a 30 year period from 1979 to 2009 shows that gold is both a hedge and a safe haven for major European stock markets and the US but not for Australia, Canada, Japan and large emerging markets such as the BRIC countries. We also distinguish between a weak and strong form of the safe haven and argue that gold may act as a stabilizing force for the financial system by reducing losses in the face of extreme negative market shocks. Looking at specific crisis periods, we find that gold was a strong safe haven for most developed markets during the peak of the recent financial crisis. DI 10.1016/j.jbankfin.2009.12.008 ER