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Are gold bars and coins worth it with inflation on the rise?

Gold bars and coins may be worth adding to your portfolio now that inflation is rising again. Getty Images

A report last week showing inflation rising month-over-month disappointed many, but it also underlined the importance of having a diversified portfolio. By having one, investors can better offset the damaging influence of inflation and higher interest rates designed to tame it. And one effective way to diversify is by turning to gold and silver.

Both precious metals offer unique benefits that other asset classes simply do not. These advantages can depend on the type of gold invested in, however, leading some to wonder if gold bars and coins are currently worth it with inflation on the rise. Below, we'll detail three compelling reasons why they may be worth investing in now.

Start by exploring your gold options online today to learn more about this unique opportunity.

Are gold bars and coins worth it with inflation on the rise?

Gold bars and coins can prove valuable in any economic climate but especially in today's still-inflationary one. Here are three reasons why you may want to get invested right now: 

They can help hedge against inflation

In today's inflationary climate, many investors benefit from the protection gold can provide. During inflationary periods, gold often maintains its value or even increases in price (as recent record gold prices demonstrate). This is a major advantage for investors who may otherwise experience uneven performances from stocks, bonds and other investments as this cycle of inflation runs its course. 

By buying gold bars and coins now, then, you can potentially stem those losses and possibly even earn a quick profit if the price of gold continues its upward movement. 

Learn more about the benefits gold can provide against inflation here.

They can diversify your portfolio

Gold bars and coins can also be an effective portfolio diversifier. Thanks to the steady performance of the metal noted above, it may be smart to get into gold now to lessen your chances of portfolio adversity. It won't be a perfect solution, but any way to diversify your portfolio to provide better strength overall is certainly worth considering now. 

Just be sure to invest in the right amount. While a rising inflation rate can make alternative assets like gold bars and coins particularly tempting now, most advisors still recommend limiting the gold portion of your portfolio to 10% or less.

They're easy to buy and sell

Gold is ubiquitous right now, with it being sold online, via top gold companies and even big retailers like Costco and Walmart. Costco quickly sold out of the gold bars they had in inventory last fall, but after restocking, quickly saw the asset become worth hundreds of millions of dollars each month

This is good for investors, who can access the precious metal with ease and sell it to others when the market timing is right. And because gold bars and coins are tangible, unlike gold IRAs and other gold investments, they can have an especially attractive edge compared to the alternatives.

The bottom line

With inflation hanging around for a bit longer, it can be advantageous to explore all of your investment options, including alternative ones like gold bars and coins. This unique type of investment can adequately hedge against inflation and diversify your portfolio in a similar fashion to other gold types. And, in April 2024, it's especially easy to buy, sell and buy more of. For these reasons, gold bars and coins may be worth it for you now that inflation is on the rise again. As with all investment types, however, be sure to do your research and limit the amount invested to truly earn the benefits of this asset. 

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