For centuries, gold has been regarded as one of the most reliable stores of value. Despite technological advances and the rise of digital assets, investors continue to view gold as a hedge against inflation, currency weakness, and geopolitical uncertainty. Its appeal lies in its simplicity — it’s tangible, globally recognized, and not tied to the credit of any government or institution.
In modern portfolios, gold often plays a defensive role. When markets become volatile or central banks pursue loose monetary policies, demand for gold tends to rise. Even small allocations — typically between 5% and 10% of a portfolio — can help balance risk and preserve purchasing power during downturns.
However, gold is not without trade-offs. It produces no income, and its price can fluctuate sharply in the short term. Still, for many investors, the reassurance of owning an asset with intrinsic value outweighs the lack of yield. In uncertain times, gold’s enduring reputation as financial insurance continues to shine.
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