In today's volatile economic environment, having the wrong asset mix in your investment portfolio can lead to significant losses. After all, everything from market fluctuations to geopolitical tensions, high inflation and other economic uncertainties can drive down the value of your portfolio if you aren't using the right asset mix to offset risk.A well-diversified portfolio, on the other hand, is prepared to weather most types of economic storms.
So, before you use this gold investing option for diversification purposes, be sure to consider factors such as management quality, operational efficiency and the geopolitical risks associated with mining locations.What to consider: Look for well-established mining companies with strong balance sheets and a history of efficient operations. And, consider diversifying across multiple mining stocks to mitigate any company-specific risks.