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Gold is a symbol of purity and wealth. In the past, the entire currency system was backed by gold, but it is now viewed as a valuable commodity whose demand will never perish as the supply of gold in the world is finite. It is always inversely related to equities, the US dollar, interest rates, etc. People consider gold the safest option to invest in, especially when the tone of the economy moves towards a recession zone. Often, gold is considered in the portfolio to reduce the risk factor as it protects the investors from the volatility of the market.
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