As I go about building up my investment portfolio, I decided that it would be apt to include gold into my collection. I acknowledge the fact that there are other options for getting your hands on this asset. However, in this article, I am going to present my thoughts on investing in gold from the perspective of an average investor.
Why Invest in Gold
Gold is seen traditionally as a safe haven when the stock market is in turmoil. When there is high volatility in the stock market, the participants back off to get their hands on gold. Such behaviour is apparent such that it is known that gold has a low correlation with other assets and investors routinely uses gold to hedge against inflation. Gold is also used a tool for diversification and was conferred the highest honour of being a currency in its own right - the Gold Standard.