as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
describe the pros and cons of investing in gold.
user
investing in gold can be a great way to diversify an investment portfolio and hedge against inflation. on the one hand, gold is a generally non-volatile asset and has been an excellent long term store of value. on the other hand, gold is a commodity and thus comes with a high degree of investment risk. also, gold has historically been correlated with cyclical economic activity, which can create volatility in the short-term. therefore, investors should be aware of the risks associated with investing in gold.
assistant