What percentage of portfolio should be precious metals?
Peter Schiff has always recommended holding 10-20% of an investment portfolio in physical precious metals. The proportion of your portfolio that you dedicate to precious metals depends on your risk sensitivity. We generally advise our clients that 5 to 15% of their portfolio should be dedicated to precious metals. The study found that the “sweet spot” for the percentage of gold in the portfolio is 20%.
In the
long term, this offers the best balance between risk and return. The specific amount of your portfolio that should be used for precious metals depends on your circumstances. Some people may do well with up to 20% of their investments in precious metals, but others may do better at just 1%. Readers should probably never consider gold as a core investment in their respective portfolios, as gold and companion metals can be unpredictable, not pay dividends, and could pose a liquidity challenge, especially in physical form.
The easiest way to add gold to a portfolio is with an ETF called SPDR Gold Shares, commonly known by its symbol GLD. Talk to your financial advisor about investing in popular low-risk gold or precious metals ETFs before you start investing in gold and precious metals.