These qualities are especially important for investors:
Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesn’t always beat them. Liquidity: If you’re buying certain kinds of gold-based assets, you can readily convert them to cash. Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.
In addition, gold offers other potential advantages:
Diversification: Because gold is not highly correlated to other assets, it can help diversify portfolios, actually making them less risky. Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.
Those are a few of the major benefits of gold , but the investment – like all investments – is not without risks and drawbacks.