Historical data on various assets are excellent sources of information. While you cannot predict the future, past data can provide clues as to how established assets will behave under certain conditions. Gold has been around since time immemorial. Its price in modern markets has been meticulously recorded. Wise investors study the fluctuations so they know when to make a move.
For example, the historical gold price chart show an inverse relationship between the precious metal and the market indices. The same holds true for the value of gold and the US dollar. This is because people view gold as a safe haven during recessions and depressions. Uncertain times make traders question the future value of equities as companies can go bankrupt or at least suffer low earnings. Currencies are also questionable. Gold has inherent value which trumps other assets.
If you want a diversified portfolio that protects you against downturns, then get some gold or other precious metals.
