How much gold should a person own?

A general rule of thumb is to keep gold at no more than 10% of the total value of your account. Gold has previously 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 metal traders mark the cost of bullion and coins to make a profit and stay in business.

Therefore, the investor buys gold or silver above the spot price. In addition, some coins and bars also have collectibility premiums associated with them. These premiums can make the bar or coin very expensive relative 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.

Usually, it is said that between 10 and 20% of that must be in gold and silver each, although that is up to you. This assignment can be a little more confusing when considering platinum, palladium and other metals as well. Investors treat gold more like a currency than silver, a metal that has far more industrial uses than gold.

Angelia Panyko
Angelia Panyko

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