This article first appeared on GuruFocus.

In October 2025, global financial markets experienced unprecedented volatility. After months of continuous gains, gold plummeted over 6% on October 22st, its largest single-day drop since 2013. The price briefly fell from its all-time high of $4,382 per ounce to below $4,100. Meanwhile, the Dow Jones Industrial Average hit a new high of 47,000 points, and the US dollar strengthened, rapidly diminishing the appeal of traditional safe-haven assets.

This dramatic market reversal has forced investors to re-examine a fundamental question:

In an era of persistent inflation, complex geopolitics, and elevated asset valuations, what truly constitutes a “safe asset”?