While gold's tangible nature is often a core appeal, a major war that disrupts global shipping and movement turns this into a liability. The cost and difficulty of physically moving gold from a vault in one country to another becomes a significant drawback, potentially making it less attractive than digital or less constrained assets.
During a war, assets like US Treasuries face a conflict. While their payment is guaranteed (safe haven property), the war itself can spike inflation, making the fixed coupon payments a money-losing investment in real terms. Investors must weigh the certainty of payment against the loss of purchasing power.
The nature of a crisis determines the dollar's role. During the tariff turmoil, the dollar weakened like a normal investment asset as the U.S. became a less attractive place to do business. In contrast, during the Iran war, its safe haven properties kicked in as investors prioritized security over economic outlook.
Even the quintessential safe haven, gold, can be sold off during intense fear. When a crisis hits, the immediate need for liquid cash (dollars) to pay bills and cover obligations overrides long-term safety. Investors liquidate well-performing assets like gold to meet short-term survival needs, creating a 'dash for cash'.