Money Watch, a personal finance column that runs every Saturday, features a financial planner from the National Association of Personal Financial Advisors answering reader questions about saving, protecting and growing your money. To submit a question, e-mail USA TODAY personal finance reporter Christine Dugas at: cdugas@usatoday.com .

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Q: I’m in my 60s and I am thinking about borrowing against my company 401(k) plan to buy gold and pay back the loan over the next few years. Is that a good idea?

A: I’m going to assume that you are interested in buying gold because you see it as (1) a safe haven in times of uncertainty, (2) a hedge against inflation, or (3) an opportunity for a big gain.

I can’t blame you for being nervous about economic and political uncertainty, the erosive effects of inflation (it has to go up at some point), and loss of a golden opportunity. After all, gold has been on a tear for the last decade.

But I’d think twice before leaping into an investment in gold, especially with money borrowed from your 401(k). Gold is, in fact, a very volatile investment. Its long-term returns are about the same as inflation, meaning its real return (return in excess of inflation) is near zero.

And, the opportunity to make a quick gain is usually based on an asset being undervalued. In fact, it is nearly impossible to know gold’s real value. You can’t value it on the basis of a future stream of interest or dividend payments. It is, in fact, a hedge against big drops in other financial assets.

The fact that you want to borrow money to invest in gold implies that you do not have other available funds to make this speculative bet. In my opinion, the last thing a client nearing retirement age should do is make speculative bets with money he or she cannot afford to lose.

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Money Watch, a new column that will run every Saturday, features a financial planner from the National Association of Personal Financial Advisors answering reader questions about saving, protecting and growing your money.

I would encourage you to remember that it is not possible for you, or anyone for that matter, to predict the direction or timing of market movements. The safety you seek is best found in broad diversification across different types of investments and vigilant cost control. In the long run, an appropriate exposure to the stock market offers the best hedge against inflation.

Because you are older than 59½ you can withdraw funds from your 401(k) without penalty. But pursuing short-term gains puts you in an extremely perilous position with respect to your long-term financial security, especially when financed with money borrowed from the 401(k). With your retirement savings you should be looking to grow in a balanced and diversified manner.

William Keffer, NAPFA -Registered Financial Adviser