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Why Gold Belongs in a Modern Portfolio

October 22, 20252 min read

Gold has fascinated humanity for millennia — not only for its beauty, but for its rarity. All the gold ever mined in human history could fit into a single cube measuring roughly 22 meters on each side. Nearly all accessible gold has already been brought to the surface, while the vast majority remains trapped deep in Earth’s core, unreachable by modern technology.

This scarcity matters. Unlike paper currency, which can be created with the stroke of a keyboard, the supply of gold grows slowly — usually less than 2% per year. Combined with its chemical stability, gold remains one of the few assets whose physical value stands the test of time.

From a financial security advisor’s standpoint, gold isn’t simply a commodity. It’s a distinct asset class — one with unique properties that make it a stabilizer in diversified portfolios. Gold doesn’t pay dividends or interest, but it also doesn’t depend on anyone’s promise to pay. It’s no one’s liability.

Historically, gold’s performance has strengthened when inflation rises, interest rates fall, or geopolitical tensions intensify. Since the COVID-19 pandemic began in early 2020, gold prices have climbed from around $1,500 per ounce to over $2,400 in 2025 — a gain of more than 60%. Few asset classes have held value as consistently through this turbulent period.

The real strength of gold is not just its return potential, but its relationship with other assets. Over decades, gold’s correlation with both equities and bonds has hovered near zero — meaning it often moves independently of them. When stocks fall sharply, gold sometimes rises or holds steady, helping to cushion overall portfolio losses.

Chart 1: Gold vs. S&P; 500 Performance (2020–2025)

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Chart 2: Average Correlation Between Asset Classes (3-Year Rolling)

Average Correlation Between Asset Classes


As a Financial Security Advisor, your goal is not to chase fads, but to build resilient portfolios — ones that can endure inflation, recessions, political upheaval, and market cycles. Gold’s role is not to replace growth assets like equities, but to complement them, acting as insurance against the unexpected. Incorporating gold thoughtfully — through bullion, ETFs, or managed funds — can help safeguard purchasing power and reduce volatility, especially in today’s uncertain world. In a diversified plan, gold doesn’t just shine — it stabilizes.

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