Gold is an integral part of a diversified portfolio because it's widely considered a store of value — something that can't be easily diluted or stolen. It's also a traditional asset for investors and helps them hedge against inflation if their currency loses value. In addition, gold has historically been seen as a hedge against economic uncertainty, which explains its use as a currency. However, gold is most commonly used as an investment vehicle for most people because it's much more liquid than other forms of physical investments like real estate or stocks.