One of the most common influencing factors for investors who consider for a portfolio diversification is the balancing of the risk and return. A risk-averse investor will try to reduce risk to a barest minimum for a given return. Gold’s portfolio diversification has consistently produced a relatively higher yield and lesser risk. Its inherent good feature is the ability to act as a good diversification asset in a portfolio with stocks. Moreover, the record shows that gold has shown very strong yield over the past years. Its valuable role to a portfolio is that it is not associated with other investment and key indicators. This independence is derived from gold’s price which is not affected by performance of other assets. Thus, this makes gold as one of the best viable elements in the portfolio diversification.