A The reasons for investing in gold have remained much the same throughout history. Gold has been a safe-haven in times of economic and financial instability. It is a proven asset-diversifier that, when included in domestic portfolios, can reduce the portfolio's overall risk. In addition, gold is an excellent hedge against inflation over the long term. Gold is the only asset that is negatively correlated against the price of the US dollar.
Investment in gold can take many forms. These could include gold bullion bars and coins, accumulation plans, mining shares, options and mutual funds. Each of these investment vehicles carries their own advantages, disadvantages and levels of risk.