## Why Invest in Gold in 2021?
Gold has been a valuable asset for centuries, and it continues to be a popular investment choice for many reasons. In 2021, there are several compelling factors that make gold an attractive investment.
### 1. Hedge against inflation
Gold has historically been a good hedge against inflation. When the cost of living rises, the value of gold tends to follow suit. This is because gold is a hard asset that is not subject to the same inflationary pressures as fiat currencies.
In recent years, inflation has been relatively low. However, many economists believe that inflation is likely to rise in the future. This could be due to a number of factors, including the massive fiscal and monetary stimulus that has been implemented in response to the COVID-19 pandemic.
If inflation does rise, gold could be a good investment to protect your portfolio.
### 2. Store of value
Gold is a store of value. This means that it can be held for long periods of time without losing its value. Unlike fiat currencies, which can lose value due to inflation, gold is a tangible asset that has held its value for centuries.
In times of economic uncertainty, gold can be a safe haven for investors. This is because gold is a scarce asset that is not subject to the same risks as other investments, such as stocks and bonds.
### 3. Diversification
Gold can help to diversify your portfolio. Diversification is a risk management strategy that involves investing in a variety of assets. By diversifying your portfolio, you can reduce your overall risk.
Gold is a non-correlated asset, which means that it does not move in the same direction as other investments, such as stocks and bonds. This can help to reduce the risk of your overall portfolio.
### 4. Safe haven asset
Gold is a safe haven asset. This means that it is an investment that is likely to perform well during periods of market volatility. In times of economic uncertainty, investors often flock to gold as a safe place to store their money.
### 5. Low correlation to other assets
Gold has a low correlation to other assets, such as stocks and bonds. This means that it can help to reduce the risk of your overall portfolio. When stocks and bonds are falling in value, gold often holds its value or even increases in value.
### 6. Tangible asset
Gold is a tangible asset. This means that it is a physical asset that you can hold in your hand. Unlike fiat currencies, which are digital and can be created out of thin air, gold is a scarce asset that is mined from the earth.
### 7. Global currency
Gold is a global currency. This means that it is accepted as a form of payment in all countries. This makes it a convenient investment for people who travel or live in different countries.
### How to invest in gold
There are a number of ways to invest in gold. You can buy physical gold, such as coins or bars, or you can buy gold ETFs or mutual funds. You can also invest in gold mining stocks.
The best way to invest in gold depends on your individual circumstances and investment goals. If you are not sure how to invest in gold, you should speak to a financial advisor.
### Conclusion
Gold is a valuable asset that can play an important role in a diversified portfolio. In 2021, there are several compelling factors that make gold an attractive investment. If you are looking for a safe haven asset that can help to protect your portfolio from inflation and market volatility, gold is a good investment to consider.
### Additional resources
* [Investing in Gold: A Guide for Beginners](https://www.investopedia.com/articles/basics/03/gold.asp)
* [Gold as an Investment](https://www.gold.org/about-gold/gold-as-an-investment)
* [Why Invest in Gold?](https://www.kitco.com/why-invest-in-gold/)