USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.
Q: Is gold a good asset to own to reduce volatility in your portfolio?
A: Fans of gold like to say it's a precious metal that holds its value no matter what. Gold, the advocates say, is the rock of stability even when stocks turn volatile.
The problem, though, is reality hasn't proven this theory out. While gold sometimes can be relatively calm vs. the stock market during extreme bear markets, it's hardly stable. Investors are learning that gold can add, not subtract, market volatility this year.
Just as the stock market started to exhibit some weakness, following comments from Federal Reserve Board Chairman Ben Bernanke, gold got even uglier. The price of gold lost 23% of its value during the second quarter, one of its worst showings in at least nine decades, Bloomberg News says.
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