How much gold do you need to own?
Recommendations on how much gold you should keep in your portfolio vary. With regard to gold, silver and other precious metals, financial blogger Len Penzo points out that many experts recommend holding 10 to 20 percent of your net assets (excluding home capital) in precious metals. Of course, this list is by no means all-inclusive, and there are also other considerations that must be taken into account. In terms of recommendations from financial professionals, we've seen figures ranging from 1 to 20 percent everywhere.
Where you can fall within this spectrum depends on a number of factors. However, many so-called “experts” recommend investing in stocks that invest 30-40% in precious metals. In general, 10-20% of them should be in gold and silver, respectively, although that's up to you. This allocation can also become a bit more confusing when looking at platinum, palladium, and other metals.
If you're thinking about buying gold and silver as an investment or making quick money, then you're buying them for the wrong reason. This means that the dollar is overvalued against gold by a similar amount TODAY and anyone who buys gold TODAY is buying it at a sharp discount to its true value. Alex, the data I've seen suggests that only one in 100 people buy physical gold and silver coins and gold bars. For those who want to invest in gold bars, you can buy the American Eagle 1 oz gold bar from Grays Silver.
The maximum amount of gold you can own without going beyond that is 500 troy ounces (just over 21 pounds) of pure gold. Dollar or Canadian dollar with it and you can use the rise in the price of gold and silver to offset the rise in the goods and services you buy. For this reason, investing in gold is a good way to invest in the future, as gold will be more valuable when the US dollar loses value. The first step in determining the “right amount of wealth insurance” required to survive a currency failure is to determine a realistic dollar price for gold when it is based exclusively on the actual currency supply and amount of gold from the US Treasury Department and World Central Banks was based.
In Adam Fergusson's book When Money Dies, he states that on February 14, 1924, Germany passed a law entitled “Third Tax Ordinance,” which restores existing mortgages at 15% of their original gold price based on the price of gold (in German marks) on the exact day and year the mortgage was created rated. However, this did not last long, as in 1971 President Richard Nixon ended the convertibility of US dollars into gold and created a fixed exchange rate between paper money and gold. Investors treat gold more like a currency than silver, a metal that has much more industrial uses than gold. Under the Gold Standard Act of 1933, the US government only imposes restrictions on how much gold can be exported to other countries.