Is gold a good investment, or is it just a store of value?

Gold is best understood as a store of value and a potential hedge rather than a growth investment. Unlike stocks or bonds, gold produces no earnings, dividends, or interest, so its price rises only when other people are willing to pay more for it, often during inflation scares or geopolitical stress. Over very long periods, gold has roughly kept pace with inflation but has badly lagged a diversified stock portfolio. Vanguard and other research houses generally view a small gold allocation as a diversifier, not a core holding. If gold helps you stay invested during scary markets, a modest slice of 5 to 10 percent may be reasonable, but don't expect it to build wealth the way productive assets do over decades.