Regardless of the form of gold you choose, most advisors recommend that you don't allocate more than 10% of your portfolio to it. Any form of investment entails risks. Deciding how much gold and silver to keep in your wallet should be a personal decision. Generally speaking, investors invest between 10 and 15% of their wealth in precious metals, such as a Gold based IRA. As a result, many experts recommend a precious metals portfolio that ideally consists of 75% gold and 25% silver.
This is because the price of silver tends to be more volatile than that of gold and will therefore have a greater impact on the value of your precious metals portfolio as its price fluctuates. While many experts believe that investors should limit 10 to 15 percent of their investment portfolio to investments in gold, there are many factors to consider before making a decision. If you are the type of investor who is relatively confident in the country's economic growth, but you want to have some type of insurance against unforeseen events that cause a recession, you can allocate between 5 and 10% of your portfolio to investments in gold and gold-related securities. Taking into account the current volatile economic climate, buying gold and silver now makes all the sense of investment, both from the perspective of coverage and safe havens and from the perspective of the potential benefits that will be obtained in the medium and long term.
He states: “Many investors wonder what percentage of their financial assets should be in precious metals. Add to this the simplicity of understanding gold investments and you have an asset class you don't want to miss. Von Greyerz, recognized as one of the world's leading experts in gold investments, believes that the situation is much worse today. Therefore, investing in gold works as a good hedge against currency volatility and inflation, since rising inflation rates usually cause gold prices to rise.
While this can help during market crashes, it's important to make sure you redistribute your gold investments each year and eliminate profits from the table. As Egon von Greyerz points out, it makes sense to diversify your investment in precious metals with silver, an affordable metal used in many industrial applications. Some investors believe that gold is not just a hedge against inflation or a useful part of a diversified portfolio. Another strategy is to invest in mining companies or ETFs in the metals sector that offer diversified exposure to many different types of metals.
