I was reading this guest post by Kim Iskyan on BIGfatpurse about 3 Good Reasons You Should Own Gold. It got me thinking about whether we should include Gold in our portfolio. Correlation between asset classes in our portfolio From our asset portfolio, there is a strong correlation between the ETF and Share portfolios since the Global and Singapore stock markets tend to move in the same direction. However, they have low correlations with our Cash, Wholesale Life Policies and Bonds portfolios. Given the size of the ETF & Share portfolio and the Other portfolio are about the same, this has helped to lower the volatility of our asset portfolio. I do agree with the article's view that since stock markets and Gold have little correlation, Gold would be a good hedge for our portfolio and offers protection when stock markets fall. We have considered adding an exposure to Gold in our Other Portfolio before for the same reason, ......