For centuries, humans have seen the value of gold. This could be due to its physical appearance, which has an almost mystical nature and was used for jewelry and coinage. Gold was one of the first metals known to man. It was a symbol of “royalty and glamour.” Gold became essential to US history when the United States Congress established gold and silver-based standard for the dollar in 1792. Gold derives its value from four central factors. Its appeal can be monetary since gold is money and has a stable value based on the fact that it can’t be printed. Its commercial value comes from the fact that it is useful for industrial purposes in things such as technology. Its cultural value relies on its significance in different cultures. Lastly, its numismatic value is based on the fact that gold is known as a collectible item. Gold as an investment can be extremely beneficial to any portfolio. The price of gold hedges inflation because it is valued in dollars. Therefore as the buying power (essentially the worth) of the dollar goes down, the price of gold goes up. There has been no better example of this than in the 1970s. Due to a number of factors, the buying power of the dollar in the 1970’s ballooned. At the beginning of the decade, inflation was around five to six percent and reached double-digit numbers by 1974. In an effort to combat this, the Federal Reserve raised interest rates, which further exacerbated the terrible economic setting. While this happened, the price of an ounce of gold went from 35$ per ounce in 1971 to 850$ per ounce by January 1980. Today, with all of the money being loaned out, printed, and given directly to Americans as economic stimulus, there is almost certainly going to be a major rise in inflation. This is also confirmed by the fact that (US grocery costs jump the most in 46 years, led by rising prices for meat and eggs) . This is, by definition, inflation. So adding some gold exposure to any portfolio at this time is certainly a good idea and will likely hedge any potential macroeconomic downside.