An important way to examine the relationship between assets is by looking at correlations. Effectively, how do two investments move in relation to each other. For example, the correlation between the entire stock market and just the midcap segment over the past 10 years or so is roughly 0.98. That means they move in virtual lockstep, as you might logically expect. Gold, however, has a correlation with the stock market of 0.04 over that same span. Essentially, gold does its own thing. 

The second category is dated bullion gold coins minted by sovereign countries. These are guaranteed as to weight and purity by official mints worldwide and have the added advantage of being legal tender. Each sovereign mint produces various size coins – 1 oz being the most popular. They also mint fractional gold bullion coins in 1/2 oz, 1/4 oz and 1/10 oz each year. The fractional sizes are popular with those who believe gold barter coins may be necessary at some future date.

The demand for jewelry is fairly constant, though economic downturns do, obviously, lead to some temporary reductions in demand from this industry. The demand from investors, including central banks, however, tends to ebb and flow with the economy and investor sentiment. So, when investors are worried about the economy, they often buy gold, and based on the increase in demand, push its price higher. If you want to keep track of gold's ups and downs, you can easily do so at the website of the World Gold Council, an industry trade group backed by some of the largest gold miners in the world. 


Bullion coins sell for a premium over the market price of the metal on the commodities exchanges.[9] Reasons include their comparative small size and the costs associated with manufacture, storage and distribution. The amount of the premium varies depending on the coin's type and weight and the precious metal. The premium also is affected by prevailing demand.

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