The ‘gold is a well inside the foundation of any long-term savings, as well as in any investment portfolio. For centuries, especially during periods of financial stress and volatility, investors sought to protect their capital in assets that provide a safe store of value. A very powerful lifesaver is precisely the stability of gold, which remains attractive to investors, yesterday and today.
Since it is one of the few financial assets that are not based on the promise to pay, gold offers a refuge from default risk. It offers investors insurance against extreme movements in the value of other asset classes. Why would you want to invest a portion of your money in gold and it is something that everyone should do?
Diversification of the portfolio. Most investment portfolios in the first place, tend to have traditional financial assets such as stocks and bonds. Diversifying your portfolio is able to offer greater protection against fluctuations in the value of any single asset or group of assets. Risk factors that may affect the price of gold is quite different in nature from those who are influencing other activities, such as stocks and bonds precisely. Statistically, it also contains a portfolio of investments in gold is something generally more robust and less volatile than those portfolios which have no gold in them.
Maintenance of the purchase order. Market cycles come and go, but in the long term, gold holds its purchasing power. The value of gold in terms of real goods and services that you can buy, has remained remarkably stable for centuries. On the contrary, the purchasing power of many currencies has generally declined, because of the price of goods and services.