Gold has historically been used as a form of currency and store of value. It was commonly used to back paper money before nations abandoned the gold standard in 1971. Today, fiat currencies are not backed by gold, so paper money has no intrinsic value. Gold offers protection against inflation, currency devaluations, and is considered a stable investment during economic crises due to its limited supply and enduring demand. For these reasons, gold remains an important asset for preserving wealth and hedging risks to one's financial security and should be part of everyone's household portfolio.