Analysis of Gold, Bitcoin, and Gold-Backed Cryptocurrencies as Safe Havens during Global Crises: A Focus on Artificial Intelligence Companies

The rapid growth of the AI sector and its increasing influence highlight the need for effective asset selection for hedging and diversification in AI-focused portfolios. This study investigates the role of gold, Bitcoin, and gold-backed cryptocurrencies in diversifying portfolios centered around AI companies. By analyzing the dynamic correlations and portfolio implications of seven leading AI firms alongside Bitcoin, gold, DGX, and PAXG from April 30, 2021, to September 15, 2023—covering various crises—we utilized the ADCC-GJRGARCH model to explore these interactions. The findings reveal that PAXG and gold exhibit low dynamic correlations with AI firms, establishing them as valuable diversification tools. Additionally, our analysis of hedge ratios shows that PAXG and gold serve as effective hedges during geopolitical and economic instability. This study emphasizes the importance of dynamic portfolio management, reinforces gold’s role as a diversifier and safe haven, and highlights the value of integrating AI companies to achieve balanced growth and stability amidst uncertainty.