Despite gold having no official role in the global monetary system, major central banks still hold large gold reserves and emerging country central banks such as the Peoples Bank of China (PBOC) have significantly increased their gold holdings in recent years. Interestingly, Chinese commercial...

A large literature tests whether Bitcoin can hedge portfolio risk, i.e. reduce the risk if added to a portfolio. Intuitively, given the extreme volatility and thus risk of Bitcoin and cryptocurrencies, the idea that Bitcoin is a hedge may be puzzling. Indeed, we show that for extreme levels of...