Before jumping to conclusions, let's first understand why investors choose to invest in gold and other precious metals. As an investor, you must know the significance of portfolio diversification and gold has a history of thousands of years of stability and scarcity.\r\rInvestors turn to gold as a hedge against inflation and risk absorption. Unlike other assets, gold prices neither rise abruptly nor fall sharply. Compared to silver, gold is much more stable.\r\rLooking at the data we used in "Historical Performance of Silver," when silver prices fell by 58%, gold prices only came down by only 30%. Even when silver fell 46% in 2011 and 25% during the Dot-com bubble burst, gold prices only fell by 19% and 17%, respectively.