In the note published over the weekend, Goldman recommended diversifying long-term bond holdings with gold, citing "fear-driven demand" for the yellow metal.
Hedge funds and other large speculators boosted their bullish bets on gold by 8.9% through the week ended Dec. 3, according to government data released last Friday. That represents the biggest gain since the end of September.
The Goldman note cited political uncertainty and recession fears as the catalyst for the move toward gold. It also mentioned worries about a wealth tax, increasing interest in Modern Monetary Theory (essentially money-printing) and the current loose central bank monetary policy.
Data buried in the note also revealed that owning physical gold appears to be the preferred method to "hedge against tail events" by the rich.
"Since the end of 2016 the implied build in non-transparent gold investment has been much larger than the build in visible gold ETFs."