10 Jan I’m nervous about the stock market. Should I buy gold coins?

Q. I keep hearing ads on TV about buying gold coins. The commercials make me a little nervous sometimes about the money I have in the stock market. Is this just a gimmick or is there really a benefit to diversifying in this way?
— Investor

A. So it’s true that gold is considered a hedge against inflation.

But commercials hawking the coins often use scare tactics to get people to buy. We don’t like that.

If you think you should have some gold in your portfolio, you don’t have to buy coins, which you’d have to find a place to store safely and eventually find a buyer.

Instead, there are plenty of mutual funds that not only hold actual gold, but may invest in companies that are in the mining business.

One could argue the mutual funds will offer more diversity than owning the actual metal.

To your question of diversification, yes, you should make sure your portfolio is diverse. If you want a second opinion, hire a fee-only financial plannerhttps://njmoneyhelp.com/2018/08/asset-allocation-retirement-near/ to review your asset allocation and make recommendations based on your goals, time horizon, risk tolerance and other issues.

Just don’t let a commercial manipulate you into buying in.

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This story was originally published in January 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.