The problem is that gold is not a hedge against market risk, it’s simply (mostly) uncorrelated to equities. If you’re specifically trying to mitigate the possib

The problem is that gold is not a hedge against market risk, it’s simply (mostly) uncorrelated to equities. If you’re specifically trying to mitigate the possibility of a large market downturn, gold isn’t necessarily going to help you at all. Instead you should look into assets that have a negative correlation with equities. Bonds are a good choice but are more strongly correlated than they once were with the market. Or you could go witb some sort of portfolio insurance: VIX futures, index puts, or whatever. I personally wouldn’t recommend them though because they are almost always a rip-off (more natural buyers than sellers). On the otherhand, if all you’re looking to do is lower your volatility, gold isn’t a bad choice. Whenever you diversify into different investments you alwaya reduce volatility as long as the correlation is less than one. Though if that is your goal, maybe consider investing in many different metals, as well as crypto.