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Many businesses and corporation have four main source of assets: stocks, bonds, cash, and land, hoping to increase their returns and decrease their risk. Fortunately, many business are recognizing a fifth and a more important source, commodities. Without commodities, business can become risky at any point in time. These commodities can range from inventory, to natural commodities like diamonds and gold. Your question would be, why choose natural commodities like gold? There are many reasons: Unlike many commodities, there prices are not affected nor related by all the other assets (for example, inventory is directly related to the business type). Gold is much more stable in any economy and would do good for any company or even personal savings for your future. Independent studies have shown that while alternative assets and traditional diversifiers often fail during times of market stress or instability, even a small allocation to gold may significantly improve the consistency of portfolio performance during both stable and unstable financial periods.
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