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. Deciding how much gold and silver to keep in your wallet should be a personal decision.
Generally speaking, investors invest between 10 and 15% of their wealth in precious metals. While many experts believe that investors should limit 10 to 15 percent of their investment portfolio to investments in gold, there are many factors to consider before making a decision. It's also a great way to diversify your portfolio, as a stock market crash doesn't usually result in a fall in gold prices. Free market analyst Harry Browne further raises this percentage and advocates for a portfolio that is comprised of equal shares, bonds, gold and cash, bringing each allocation to 25 percent.
The easiest way to add gold to a portfolio is through an ETF called SPDR Gold Shares, commonly known by its symbol GLD. Throughout history, in all countries where there has been a serious financial crisis, gold and silver have always served as currency. To begin with, every retail investor should have no more than 10 to 15 stocks, comprised of high-yield stocks, growth stocks, speculative stocks, healthy geographic stocks, and gold. If you belong to this category of investors and consider that investing in today's economy involves moderate to high risk, you may want to allocate a slightly larger portion of your portfolio to gold and gold-related securities.
Add to this the simplicity of understanding gold investments and you have an asset class you don't want to miss. The personal finance website The Balance strikes a balance and recommends a range of five to ten percent for gold holds. Of course, this may seem like a terrible idea, since gold hasn't done anything spectacular in a few short years. If you believe that the economy is going down and that public debt is raising inflation rates and that the Indian rupee is losing value will eventually cause financial chaos, you may be tempted to allocate up to half of your portfolio to gold and gold-related securities.
If you are the type of investor who is relatively confident in the country's economic growth, but you want to have some type of insurance against unforeseen events that cause a recession, you can allocate between 5 and 10% of your portfolio to investments in gold and gold-related securities. Most investment experts recommend spreading your investments across several asset classes, such as stocks, bonds, gold, real estate, etc. To help you decide how much gold and silver you'd like to consider owning, we've compiled information from all over the country. While buying physical gold in the form of jewelry, coins and ingots was traditionally more common, in recent years, digital gold, gold-based funds and ETFs have attracted the attention of investors.