Ideas in this flowchart

• Gold can hedge investment risk, but significant price moves may call for rebalancing.
• Gold tends to perform well when other investments do badly.
• Gold’s price has tended to peak when economic sentiment reaches rock-bottom.
• Selling gold can feel difficult during such moments.
• Gold can be used to hedge investment risk in other assets.
• Examples of other assets include shares and bonds.
• The hedge strategy applies after significant price moves.
• Rebalancing holdings can make sense after those price moves.