Investing in gold and precious metals is the best way to protect your capital from inflation during periods of financial turmoil, where the dollar is weak. Precious metals have intrinsic value, enabling them to preserve their price or even increase it.
In addition, gold is a limited resource which cannot be manufactured, so the demand is always increasing. Especially in India, the largest gold consumer in the world.
The demand for gold does not change its price, nor stops its rising. Gold is also an effective way to hedge against inflation because it has a negative correlation with real interest rates. When inflation is on an upward trend and the interest rates go up, the price of gold usually rises, since it attracts investors who have not been able to reap sufficient revenue from other types of regular investments.
Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it has always maintained its value over the long term.