Gold
A precious metal widely used as a store of value, inflation hedge, and safe-haven investment.
Definition
Gold is a precious metal that has served as a store of value for thousands of years. As an investment, gold is considered a safe-haven asset that tends to hold or increase its value during economic uncertainty, inflation, and geopolitical crises. Investors can gain gold exposure through physical bullion (bars and coins), gold ETFs (like GLD and IAU), gold mining stocks, and futures contracts. Gold has historically maintained its purchasing power over very long periods — an ounce of gold bought roughly the same amount of goods in ancient Rome as it does today. Central banks hold gold as part of their reserves, with the US holding the largest reserve at over 8,000 tonnes.
Related Terms
Commodities
Raw materials or primary agricultural products that can be bought, sold, and traded.
EconomyInflation
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
InvestingDiversification
Spreading investments across various assets to reduce risk.