A safe haven
Few traders can resist the lure of precious metals such as gold. For traders looking at diversifying their exposure to the markets, investing in precious metals is a sensible choice.
Precious metals provide a useful and effective means of diversifying a portfolio and offer unique protection against inflation and insurance against financial or political disasters.
Reduce your risk
Due to their widespread industrial applications, they also have intrinsic value and a low correlation to stocks and bonds, hence a small percentage in a portfolio can reduce volatility and risk.