Even so, some journalists and financial enthusiasts say that only 4 to 10% should be dedicated to precious metals. Again, it all depends on your financial situation and what you want to get out of your investments. However, keep in mind that no expert says you shouldn't have anything in gold or silver. Everyone recommends at least some amount.
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. He states: “Many investors wonder what percentage of their financial assets should be in precious metals. Some investors who are genuinely concerned about the financial system have 60 to 100% in gold, along with some silver.
Holding even 10% of your assets in gold will ensure the security of your portfolio. Investors must decide for themselves what percentage they are comfortable with. In our opinion, investment in metals should be sufficient to resort to it in the event of a crisis in the financial system that prevents access to other investments or prevents obtaining cash with other assets. It's important to remember that gold and silver are a currency and offer immediate liquidity.
Throughout history, in all countries where there has been a serious financial crisis, gold and silver have always served as currency. If you've been struggling to determine if you have enough physical gold and silver, GoldSilver has created a practical guide for you. This chapter will look at the important considerations that any gold buyer or investor should have to help you determine how much gold and silver you should buy. In fact, normally, gold tends to have an inverse relationship with stocks, since the price of gold often rises when stock prices fall.
However, it's worth noting that if your short-term outlook for the overall economy is very positive, keep your investment in gold to a minimum, as you would expect the price of gold to be affected as the world economy recovers and begins to grow at a faster rate.