Throughout history, gold has been viewed as a special and valuable commodity. Nowadays, owning gold can act as a hedge against both inflation and deflation, as well as a good portfolio diversifier. As a global store of value, gold can also provide financial cover during geopolitical and macroeconomic uncertainty. Some people argue that gold has no intrinsic value, that it is a barbaric relic that no longer possesses the monetary qualities of the past.
They argue that in a modern economic environment, paper money is the preferred currency; that gold is only good as a material for making jewelry. Stock market volatility aside, the value of the dollar has been steadily declining. What does that mean for anyone with cash reserves in their bank? The corresponding loss of purchasing power. Precious metals, whose value has increased in recent years, can compensate for that loss, as investors use the inverse relationship to protect their portfolios.
Precious metals are a way to protect against inflation and can even add stability to retirement accounts. That's why many people turn to gold to protect themselves against currency volatility, in particular, the U.S. UU. For some people, physical assets such as real estate and gold offer greater peace of mind than assets that cannot be touched, such as stocks, bonds and mutual funds.
If the modern paper money economy collapsed, gold may not have immediate use, as it panics and people fight for their basic needs, but eventually it will. And to the extent that recent years have made people more concerned about the possibility of a major crisis, they have gold as protection.