G old is an excellent way to diversify your investment portfolio. In times of high inflation or great uncertainty about the economy, these traditional investments tend not to fair well. Gold, on the other hand, tends to do well when people are looking for a place to safely store their money. Gold often moves in the opposite direction of traditional investments, making it a good way to stabilize the value of your portfolio. G old also can be attractive as a stand alone investment.
Many experts believe that the value of gold today, in terms of paper currency, is simply too low.
As gold reserves decline, the price of gold will move up. G old is an excellent hedge against inflation. In countries where the money has become valueless or nearly valueless, such as 1921-24 Germany, or modern day Brazil or Italy, the purchasing power of an ounce of gold has stayed nearly the same throughout. Even in the USA or Canada, where inflation, although troublesome, has not lead to the almost total devaluation of the currency, the purchasing power of an ounce of gold has stayed almost exactly the same throughout the country's history. G old is one of the most liquid of all investments.