Why should gold be the product that has this unique property? Most likely it is because of its history as the first form of money, and later as the basis of the gold standard that sets the value of all money. Because of this, gold confers familiarity. Create a sense of security as a source of money that always has value, no matter what.
The properties of gold also explain why it does not correlate with other assets. These include stocks, bonds and oil.
The gold price does not rise when other asset classes do. It does not even have an inverse relationship because stocks and bonds are mutually exclusive.
REASONS TO OWN GOLD
1. History of Holding Its Value
Unlike paper money, coins or other assets, gold has maintained its value over the centuries. People see gold as a means to transmit and maintain their wealth from one generation … Read More