The Advantages to Protecting Your Investment Portfolio with Gold Bullion

Gold is an Effective Diversifier.
The strength of gold as a diversifier is due primarily to its negative correlation with other asset types. The market and economic forces that determine the price of gold are different from those that affect most financial assets, and are very often in direct opposition to them...in other words, its price tends to move in the opposite direction from U.S. stocks, Treasury bills, and bonds. That not only makes it an effective diversifier...it also helps to reduce portfolio risk.

Gold Enhances Portfolio Returns.
Gold can reduce portfolio risk...and that can lead to increased returns due to a combination of two factors: the effect of compounding, and the ability to add higher-yielding, riskier assets without raising target portfolio risk levels.

Gold is Competitive with Conventional Diversifiers.
Traditionally, many portfolio managers have diversified via investment in bonds. This no longer represents an effective strategy as stock prices and bond prices no longer move in opposite directions. Additionally, gold is also competitively advantageous versus Treasury bills: the upside potential is usually larger; gold is more negatively correlated with other assets; Treasury bill rates have declined considerably in recent years; gold is superior to Treasury bills as a hedge against short term interest rate changes.

Gold is Highly Liquid.
Gold is easily convertible to cash. Gold can be readily bought and sold 24 hours a day, and trading spreads are narrow...indeed bid/offer spreads are similar to the spreads on stocks.