Commodities can behave differently from stocks and bonds, which may create diversification potential. That does not mean physical gold or silver is guaranteed to rise during every crisis.
Diversification is about relationships
An asset can contribute to diversification when its returns do not move exactly like the rest of a portfolio. Those relationships change over time.
Physical metal adds unique costs
Retail premiums, buy-sell spreads, shipping, storage and insurance make physical bullion different from a low-cost market instrument.
No income stream
Physical metal does not pay interest or dividends. Its return depends on resale value after costs.
Avoid concentration
Regulators caution that metals remain volatile. A diversification argument is not a reason to concentrate savings in a single commodity.
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Sources and further reading
This page is educational and does not recommend a personalized allocation or promise that precious metals will rise in value.