About Gold

Gold is the first precious metal that jumps to mind for most people; gold is inherently worth money and there's a prevailing feeling from "gold coins", "dubloons", etc. that gold will always be something you can use as fiat currency. That isn't the case.

What is gold in the financial sense?

Some assert that gold is an asset with intrinsic value, making it unique and valuable for investors to hold in their portfolios. Although the commodity could be just as volatile as stocks in the short term, history has shown it to appreciate in value in the long term. Over the past 20 years, the spot price of gold has increased 800% to $5,053.40 per ounce as of February 10, 2026.

- Seth Carlson, "Is it the Right Time To Invest in Gold?", March 25, 2026

 

What does gold do?

Gold serves to diversify a portfolio. It's specifically sensitive to "real yields (inflation-adjusted interest rates), the U.S. dollar, inflation expectations, perceptions of policy and fiscal credibility, and geopolitical risks"_[see].

In essence, since gold's usage isn't direct human consumption (i.e., consumer-to-business bartering) but indirect (i.e., technology, value of currency), gold can withstand shaky stock market moments..

It's not tied to stocks, bonds, or real estate; because of its different risk factors and independence, gold can act as a singular type of hedge against market instability.