The reasons to own gold actually are simple. While some may imbue gold with irrationally large super-human attributes, the reality is that gold actually does a lot for people who own it – more than most other forms of investments or assets can and do provide.

Gold is a very good portfolio and wealth diversifier. It protects its owners from losing wealth to market vagaries, meaning it is an excellent means for capital preservation. It also offers its owners excellent means to generate additional wealth through capital appreciation.

Some people will say that gold is not an investment, meaning that it is, in their views, a form of money. In this way, one might think of gold as the denominator of one’s wealth. Others see gold as an investment, the numerator in one’s calculations of worth. Both are correct. This is the power of gold: It defines the value of your other assets, and it also is an asset that can, does, and has over the past millennia delivered great additional wealth to people who own and hold it.

Gold makes sense in and of itself, and as part of a diversified portfolio of stocks, bonds, precious metals, real estate, and other assets.