Gold hedges against currency debasement, Goldman says

``Goldman did find that there is one scenario in which the yellow metal lives up to its billing as a hedge: currency debasement. "We find that gold can effectively hedge against geopolitical risk if the geopolitical event is extreme enough that it leads to some sort of currency debasement," Currie and his team write, "and especially if the gold price move is much sharper than the move in real rates or the dollar."'' -- It's not clear that they explicitly tested for deflation and/or negative interest rates...