Diversify Your Portfolio With Gold?

If you want a diversified portfolio, you need to find the correlation between the assets in your portfolio. Historically, gold has been believed to be a diversifying asset as it can often have a negative correlation with other assets, a fact that is true....sometimes. Over the past five years, the correlation between gold and 10-year U.S. Treasuries has been as low as -0.8, but also as high as 0.6. Similarly, the correlation between gold and stocks has been as high as 0.9. This reinforces an important point when using correlation or other statistics like beta: While we can easily find historical values, what we really need are the values going forward. http://finance.yahoo.com/news/much-gold-investors-zero-suffice-040100747.html