Gold is appealing as an investment for a variety of reasons. Its scarcity and long history of retaining value make it a safe haven against economic downturns and inflation. Unlike stocks or bonds, gold is not a company’s liability and provides security in difficult times.
Diversification is another benefit. Gold prices frequently differ from those of stocks and bonds, lowering total portfolio risk. It can also be used as an inflation hedge, with the potential to increase in value as prices rise.There are other ways to invest in gold, including real bars and coins
However, there are disadvantages. Physical gold requires secure storage and insurance, which increases costs. While gold retains its value, it does not create income, unlike equities and bonds. Furthermore, short-term price changes can be significant.