Gold is an important asset class to own in a diversified portfolio. Because of its low co-relation to other assets and other factors holding some gold protects a portfolio especially during downward market moves. Since gold does not produce income such as a dividend it does not mean one should avoid them. According to World Gold Council even holding a small percentage of assets in gold can be beneficial to a portfolio.
Some of the reasons for owning gold are shown in the infographic below:
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Source: World Gold Council
- SPDR Gold Trust ETF (GLD)
Disclosure: No Positions