How much gold should i have?

A general rule is to keep gold at no more than 10% of the total value of the account. Previously, gold moved in the opposite direction to the US dollar, so some investors use it as a hedge against inflation.

precious metals

are expensive: precious metals are expensive and investors often pay high premiums to buy gold and silver. Precious metals traders increase the cost of ingots and coins to make a profit and stay in business.

The investor therefore buys gold or silver above the spot price. In addition, some coins and ingots also have collectible bonuses. These premiums can make ingot or currency very expensive compared to the current spot price of gold or silver. 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. Investors can invest in gold through exchange-traded funds (ETFs), buy shares of gold miners and associated companies, and purchase a physical product. These investors have as many reasons for investing in metal as there are methods for making those investments.

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. It is clear that, historically, gold has been an investment that can add a diversifying component to your portfolio, regardless of whether you are concerned about inflation, a downward U. During those times, investors who held gold were able to successfully protect their wealth and, in some cases, even use the commodity to escape all the confusion.

In addition, several central banks have increased their current gold reserves, reflecting long-term concern for the global economy. Precious metals can offer protection against inflation: gold, silver and other precious metals can offer protection against inflation or rising prices. The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a U. Meanwhile, market guru Jim Cramer, host of CNBC's Mad Money, suggests maintaining a gold allowance of up to 10 percent.

However, if a financial crisis seems to be looming, you may want to invest in a fair amount of gold and silver to protect your funds. That would be true if you believe that the dollar is a fair value compared to gold right now. Since gold, for example, is a commodity denominated in dollars, when the dollar weakens, gold prices can rise. I wish I had an enormous amount of gold for emergencies, like in the movies (Die Hard 3 with the Fort Knox raid, for example).

Today, these organizations are responsible for retaining nearly one-fifth of the world's supply of gold above ground. I think a more likely scenario is that gold or a new world currency convertible into gold for world trade will become the next reserve currency. This is because the price of silver tends to be more volatile than that of gold and will therefore have a greater impact on the value of your precious metals portfolio as its price fluctuates.