Even then, some journalists and financial enthusiasts claim that only 4 to 10% should be invested in precious metals. Again, it all depends on your financial situation and what you want to get out of your investments. Note, however, that no experts say that you shouldn’t have anything in gold or silver. They all recommend at least a certain amount.
In times of relative stability and prosperity, 10% is the rule of thumb. However, as the economic climate becomes more volatile and geopolitical risks increase, you should increase your allocation to gold as much as necessary to effectively protect your wealth. He says: “Many investors are wondering what percentage of their financial assets should be invested in precious metals. Some investors who are really concerned about the financial system have invested 60-100% in gold, along with some silver.
Having even 10% of your wealth in gold ensures the security of your portfolio. Investors must decide for themselves what percentage they feel comfortable with. In our opinion, investments in metals should be enough to fall back on if there is a crisis in the financial system that prevents access to other investments or makes it impossible to raise cash from other assets. It’s important to remember that gold and silver are a currency and provide instant liquidity.
Throughout history, gold and silver have always served as currency in every country that has had a severe financial crisis. If you’re struggling to determine whether you have enough physical gold and silver, GoldSilver has created a handy guide for you. This chapter discusses key considerations for any gold buyer or investor so you can decide how much gold and silver to buy. It’s worth noting, however, that if your short-term outlook for the overall economy is very positive, you should keep your gold investment to a minimum, as it would be expected that the price of gold could subside as the global economy recovers and starts to grow faster.
Another interesting approach to deciding how much gold you should allocate to your investment portfolio is to measure the percentage of global financial assets that gold bars make up.
