Our focus today will be on the latter two, diversification and time, although having a disciplined financial plan and supporting it may be the most important of the three.
Gold tends to have low correlation with other financial assets and there is a credible argument that gold should have a permanent place in portfolios because of that diversification benefit.
The bottom line: The resumption of easy money policy by the Federal Reserve in the aftermath of the 2008 financial crisis has re-affirmed and broadened the positive correlation of different asset categories, undermining the effectiveness of asset diversification strategy in reducing market risk.