How much of investment portfolio should be in precious metals?
A rule of thumb is to limit gold to no more than 5 to 10% of your portfolio. Depending on your situation and risk tolerance, you may feel more comfortable with a larger or smaller percentage of gold in your portfolio. The portion of your portfolio that you dedicate to precious metals depends on your risk sensitivity. We generally recommend that our clients dedicate 5 to 15% of their portfolio to precious metals.
Peter Schiff has always recommended holding 10-20% of an investment portfolio in physical precious metals. But how much of that percentage should be in gold and how much in silver? An allocation to precious metals can be an attractive risk management tool. Precious metals can be a dynamic and multi-faceted hedge against many forms of risk.
They also have a track record of weakening investor portfolios against severe market declines (chart. This is particularly useful for long-term investors who want to hedge against a wide range of known and unknown risks. Instead, Cramer has created five equity areas that shield a portfolio and generate maximum profit at the same time. At the outset, every retail investor should have no more than 10 to 15 stocks, consisting of high-interest stocks, growth stocks, speculative stocks, a healthy geographical share, and gold.
Talk to your financial advisor about investing in popular low-risk gold or precious metal ETFs before investing in gold and precious metals. The easiest way to add gold to a portfolio is with an ETF called SPDR Gold Shares, which is commonly known under the symbol GLD.