Gold is one of the most trusted and reliable investment tools, mainly because it has a historically proven track record of moving independently of other asset class. It brings stability to the investment portfolio, and saves from the volatility, especially during recession and market shock.
One of the reason why people like gold as an investment tool is because its value is known to increase, slowly but surely. Gold as an investment is also highly reliable because it is tangible and can be easily liquidated, which helps in protecting the purchasing power of the buyer, while also enhancing its risk tolerance. Gold is easily accessible and thanks to the development in the financial and investment sector over the period of time, gold and gold related investment tools are now available in other non-tangible forms for the convenience and safety of the investors, such as gold bonds, gold ETFs, and so on.
People who are seriously looking to diversify their investment portfolio without adding any further volatility can think of investing in gold with eyes closed. However, the investment proportion should ideally stay within the bracket of five to ten percent at best, because even gold provides consistent growth in value, the returns are not very high. Investment in gold is more to protect the investment portfolio from regular market risks and bring stability, rather than for higher returns.