Hedging with gold

Given its low correlation with stocks and bonds, gold can provide an important role in portfolios: diversification. Gold’s ability to act as a “store of value” may provide ballast during times of market volatility and economic uncertainty. It can also serve as a hedge against rising inflation.^* Since owning gold bars and coins (called bullion) requires delivery and storage of the physical asset, investors often look to funds for exposure to the precious metal.