Read the passage and answer the following questions:
Over the past few years, there has been a noticeable surge in gold prices across global and Indian markets. Several factors contribute to this rise, including inflation, geopolitical tensions, fluctuating currency values, and increased consumer demand. However, many financial experts argue that the current hype surrounding gold rates is not entirely based on practical factors but is partly driven by emotional buying and media influence.
In India, gold holds cultural and emotional value, especially during weddings and festivals. This emotional attachment often leads to panic buying whenever there's even a minor increase in prices, further pushing the rates upward. Moreover, with social media platforms constantly updating people about price movements, the perception of scarcity or urgency tends to fuel impulsive investments.
While gold is traditionally considered a 'safe haven' asset during uncertain times, experts advise caution. Blindly following the hype can result in financial decisions that may not align with long- term goals. A balanced approach, guided by market research and expert opinion, is more beneficial than reacting to temporary trends.
What is the meaning of “safe haven” as used in the passage?
Show answer & explanation
Correct answer: C
Explanation
The passage explicitly states that 'gold is traditionally considered a 'safe haven' asset during uncertain times,' indicating it is a secure investment to hold when markets are volatile, rather than just a physical storage location or a liability.