You probably already know the benefits of having a balanced portfolio. Why should you invest in gold? Gold is a commodity that’s traditionally used as a hedge against inflation and an alternative investment asset to stocks and bonds. Investors and analysts alike have for many years questioned the long-term stability of the global economy and its currencies. It is this shaky confidence that creates the ideal opportunity to invest in gold.

1. Negative correlation with USD

Gold is known for its inverse correlation to major currencies, such as the US Dollar. Here’s its performance against the US dollar over the past 10 years: Source: Macrotrends

2. Low correlation with the stock market

Gold also has a low correlation to the stock market and it could protect your portfolio from significant drops during a market crash.

3. Hedge your portfolio against inflation

If you have been reading the news, you might know that the gold market can be perceived as “volatile”, with hard-to-predict price movements....