Investors buy gold for:
Protection from the destructive forces of inflation. Since 1933 the purchasing power of gold has increased more than 170% while the purchasing power of the dollar has fallen 93%.
A hedge against a falling dollar. When the dollar falls in value, gold tends to rise.
A doomsday ally. Historically investors have fled to gold when wars, terrorist attacks, and general geopolitical upheaval create uncertainty.
A powerful counterbalancer. Adding gold to a portfolio of stocks and bonds may increase portfolio return and decrease portfolio risk.