Stocks and mutual funds are both excellent investment instruments. But gold is better, especially when you want to diversify your portfolio. According to many experts, gold is an excellent strategy to diversify one’s portfolio because it has a low negative relationship with all the biggest investments. Gold also shields one’s portfolio from volatility, which can reduce returns. Furthermore, because most equity markets cannot impact the price of gold, investing in gold carries almost no risk. As a result of the high rate of return, it can be stated that gold is a good option for portfolio diversification.