Gold and silver have long been among the most popular precious metals for investment purposes. As for how much of either one of these assets you should consider owning, the recommendations, according to Usmoneyreserve.com, range from 5 to 10 percent of your total investment portfolio. However, other sources suggest taking this percentage up to 25 percent or more. Here’s a closer look at what to consider with the amount of gold and silver to consider owning.
Understand What the Experts Say about Gold
Jerry Wagner of Flexible Plan Investments states a 20 percent allocation of gold is what’s recommended for traditional investment portfolios. Nicholas Colas of DataTrek Research suggests being more cautious and making gold 10 percent of your portfolio. Finally, Mark Hubert of MarketWatch says 4 percent is a better starting point with gold investments if you haven’t invested in precious metals for investment purposes before.
Pay Attention to What the Silver Experts Say
CoinWeek keeps their silver recommendations simple by saying “Every American should own some silver.” LiveLearnAndProsper.com gives a more specific recommendation, suggesting about 6 percent of your portfolio should be silver. Lastly, GuruFocus.com recommends making approximately 30 percent of your precious metals allocations silver.
Know Why You Want to Invest in Gold & Silver
Ultimately, you want to do what’s right for your situation. One way to determine just what’s “right” for you is to figure out your top reasons for looking at gold and silver as investment possibilities. For instance, if you have concerns about economic instability or global market conditions, a bigger investment in gold and silver could provide some extra peace of mind.
Consider How Diverse Your Portfolio Is Right Now
It’s often said you shouldn’t put all your eggs in one basket. This advice definitely applies to your investment portfolio. For example, if you have too many investments that are heavily reliant on current economic conditions, a more significant investment in gold and silver can be an effective way to diversify your portfolio.
Start Small if You’re New to Precious Metals Investments
It can take some time to get used to the gold and silver market and the various factors that can affect current and future values. Therefore, if you’re new to precious metals for investment purposes, you may feel more comfortable starting on the smaller side with your initial investments. Once you get a better feel for how these investments are working out for your situation, you can always make adjustments with your percentages.
Get Professional Input
Additionally, if you’re new to gold and silver investing, it’s also worth getting some professional advice. This can involve talking to someone you trust at your local bank who’s familiar with investments of this nature. Another option is to seek out a more neutral third party like an investment counselor or advisor.
If you decide to include silver and gold in your holdings, make sure to work with a reputable precious metals dealer, such as First National Bullion. Scottsdale residents need to be able to consult professionals with specific expertise when they’re ready to invest in gold, silver, and other precious metals.
Do Your Gold & Silver Homework
Lastly, you’ll be in a better position to make decisions about purchasing gold and silver if you brush up on the basics of these precious metals. For the purpose of investing, this typically means understanding:
• How gold and silver are valued
• The different forms gold and silver can take for investment purposes
• The pros and cons of each investment option (e.g., gold/silver bonds vs. physical gold/silver)
• What the going rates are for these commodities
• Factors that can affect short-term and long-term gold and silver value
When they’re looking for the best place to purchase gold and silver bullion, Scottsdale investors reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how gold and silver can figure into your investment planning decisions. Give one of our experienced dealers a call today at 480-546-8928.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.