Gold acts as a safe haven and a hedge against inflation and crises. When markets fall, fear drives demand for gold and its price tends to rise. Not always — but historically it has cushioned portfolio falls during panic moments.
⚠️ Important
What it does not do: Gold does not generate profits, pay dividends, or earn interest. Its value depends exclusively on what the market is willing to pay. It is not the return engine of a portfolio — it is the airbag.
Investors who include it typically allocate 3–7% of the total portfolio to gold — within the alternatives block (5–15%), sharing that space with positions in crypto or other commodities.