Gold has long been viewed as a timeless store of value — a hedge against inflation, currency weakness, and economic uncertainty. But is it still a good investment today?
The answer depends on your goals. Gold doesn’t generate income like stocks or bonds, but it can help preserve wealth when markets are volatile. Historically, gold prices tend to rise during periods of high inflation or geopolitical tension, when investors seek safety. Over the past two decades, gold has outperformed many traditional assets during crises, such as the 2008 financial collapse and the COVID-19 market shock.
However, gold’s price can also be unpredictable. It can stagnate for years, offering no yield and sometimes losing value when interest rates rise or the U.S. dollar strengthens. For long-term investors, this makes gold better suited as a diversifier rather than a core holding.
A balanced portfolio might include a small allocation to gold—typically 5–10%—to hedge against uncertainty. Physical gold, ETFs, and mining stocks each offer different levels of exposure and risk.
Bottom line: gold can be a smart addition for stability and protection, but not a replacement for growth-oriented investments.
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