That said, many so-called “experts” recommend investing in stocks, with an investment of 30 to 40% in precious metals. It is generally said that between 10 and 20% of that amount should be in gold and silver each, although that depends on you. This assignment may be a little more confusing if platinum, palladium and other metals are also considered.
precious metalsdon't pay dividends: physically owning gold and silver or other precious metals doesn't provide an opportunity to earn dividend income.
This is a very common debate regarding these investments, as investments in dividend-paying stocks can offer investors an opportunity to accelerate portfolio growth. In times of relative stability and prosperity, the general rule is 10%. 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. Your portfolio should be structured in a way that helps you achieve your long-term goals.
However, many experts warn that you should be careful about the amount of gold you should include in your portfolio. A general rule is to limit gold to no more than 5% to 10% of your portfolio. Depending on your situation and your risk tolerance, you may be more comfortable with a larger or smaller share of gold in your portfolio. It caught my attention when you explained why you think gold and silver are undervalued in today's market.
In addition, I am trying to understand who will help you with physical gold or silver in times of depression. The question of how much of a portfolio should be invested in gold, silver or other precious metals is a matter of debate. However, even when gold doesn't rise at a fast pace, it's still considered a pretty decent way to avoid losing due to inflation. Gold and silver are very different from other assets, so how you buy them will depend on a different set of guidelines than, for example, stocks or bonds.
Since I started writing about the importance of owning physical gold and silver as insurance against the inevitable fall of the US dollar, I have received an increasing volume of questions in my inbox from people curious to know more about precious metals. I tried to find information on the Internet about Soviet citizens and whether they had gold as a repository of wealth, but I found very little evidence to indicate that they had it. Many commodity analysts closely monitor the relationship between the price of an ounce of gold and an ounce of silver. If you think that bonds and stocks don't offer enough diversity, adding a little bit of gold can help you feel more comfortable.
Gold, silver and precious metals can provide greater peace of mind, but they can also have an opportunity cost. Now that the U.S. Federal Reserve has apparently finished raising interest rates in the near future, that should bode well for gold and silver, when rates are low. Gold and silver are safe assets and offer true diversification: they are independent and act as protection against government policies, economic crises, and the potential devaluation of digital and paper fiat currencies, such as the U.
When considering how much gold and silver should be in your portfolio, consider the main reason you buy precious metals in the first place: to protect yourself against financial and economic disaster.