My own portfolio has gold stock. Why? Because I am a strong believer in asset allocation and keeping extremely diversified. Therefore, I have a little bit of practically everything, whether it be stocks, bonds, mutual funds, real estate, et al. And gold is one of them.

But is it for everyone? Perhaps and perhaps not. Gold has recently had a very strong run, having broken the $400 mark for the first time since 1996. However, the price today is just under half the top of $800 an ounce reached some 20 years. Some experts say that the price is a smokescreen in the whole debate. Risk, or rather the management of it, they claim, is the primary reason why ordinary investors might be swayed by gold's glitter. Actually, when you look at gold against equities and hedge funds, the potential return is rather low. However, because of that very low correlation with stocks, bonds, and real estate, gold could bolster your portfolio when the stock market sinks.

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