Personally my opinion is because gold doesn't produce anything, unlike what I will call "real" investments. It isn't an investment in the same way that your house you live in is not an investment. Gold produces no dividends, it doesn't bring in rent, it isn't being used to produce anything that benefits society like a piece of land growing crops or even if it were put to use in an industrial setting. It just sits there collecting dust. Hell, it doesn't even provide a roof over your head or decorate your wrist. Its value is entirely up to the whims of other people who think it will be valuable when other income-producing investments are having a slow moment.
If I wanted something uncorrelated to stocks to make me feel better about a doomsday scenario or just smooth out the ride, I'd be more interested is somethjhg people actually need. Platinum, rare earth metals, petroleum, whatever. Most of us can live a long and fulfilling life without *needing* gold for anything.
I don't disagree with you on most of this. Just a few thoughts though... I just bolded that one part because I think that's exactly the kind of scenario when gold can help to moderate investment returns. Let's look at the timeframe since gold became easily obtainable/tradable again in the 1970s, and let's forget about 1973 & 1974. There was pent up demand for something that had been difficult to obtain or whatever. But from 1975-1980 gold demolished financial assets. Then we had the period from 1981 to 1999 when owning stocks (and bonds and cash) was absolutely paramount to building wealth. Gold was a drag on any portfolio during that time. But barring the existence of crystal balls, someone who holds gold for when it outperforms has to accept that they'll also hold it for long periods when it underperforms. It "moderates" overall returns in both directions - lower highs and higher lows, in general. But stocks
also moderate gold's return when it is doing well. From 2000 to 2011 or so, stocks really went nowhere while gold pretty much went straight up.
In recent years stocks have clearly been the winning hand and, yes, over time they probably will continue to be the best asset to hold in significant proportions. Let's hope so! Stocks doing well usually indicates an economy that is productive and moving in the right direction to the benefit of many.
I hold some gold because I am very close to the end of my earnings potential and I can't afford to have a long period of bad returns. Sequence of returns risk is greater for me than it is for someone with skills that are valued in today's economy. Mine no longer are, or at least not to the extent that they used to be.
Lastly, gold is nothing more than a tool in the investing toolbox. There's nothing sacred about it. It's just different enough for me that I believe holding some is wise. It's definitely not for everyone and I get that. Again, I am not selling anything... just looking at numbers and trying to figure out what makes sense for me.