Why People Buy Gold Protection against currency: Gold is often used as a hedge fund to protect against losses in other asset classes. Gold is a safe haven: It serves as security in times of crises at home and abroad. Gold is tangible: Many people buy gold because you can hold it in your hand! Gold is private: Physical gold provides an alternative savings vehicle held outside of the traditional banking system. Gold is a liquid asset: Gold is traded worldwide and can be easily converted to cash equivalents.