Seasoned traders mitigate risk by diversifying their portfolios. Trading in commodities like gold is considered an excellent way to do this, because gold prices tend to negatively correlate with stock markets.
A hedge against inflation
While currencies lose value over time due to inflation, gold is inflation-proof. Even during the financial crisis that struck global markets in 2008 and after, gold prices were barely affected.
Store of value
About 95% of gold in the world is held as jewellery or in bullion vaults, and the supply is growing at a very slow pace. The laws of supply and demand mean that its value shows limited volatility