Defensive investments are primarily intended to generate a consistent or stable revenue source. These assets have lower potential losses and more steady profits in the near term, but they also have the possibility for lower long-term returns. Gold, as a protective asset, can be regarded a safe investment, even when compared to ETFs. This is because gold trading may expose individuals to global risk. Gold is a defensive asset since it holds its worth well during economic slowdowns. It’s also a great diversifier, with a small beta to stocks. Gold is an excellent investment because it protects against central banks depreciating their currencies.