One rule of thumb that’s often mentioned is to make precious metals somewhere between 5 and 10 percent of what you’ve set aside for your investments. That being said, there are some other factors that go into deciding what’s ultimately comfortable and suitable for you. Here’s what to consider when determining how much of your savings should be in precious metals, brought to you by the experts from First National Bullion. Carlsbad residents can rely on our professionalism and expertise when they’re ready to invest in gold and other precious metals.
Your Risk Level Comfort
As you figure out how much of your savings to put into precious metals, start by considering how much risk you’re comfortable taking. The risks associated with precious metals like gold and silver come from the possibility of fluctuating prices based on factors such as:
• Current economic conditions
• Available supplies
• Demand for certain precious metals at any given time
• Any other outside factors that could influence investment trends
The upside is it’s possible to minimize these risks by being a well-informed and knowledgeable investor. If you keep an eye on trends in prices, it’s often easier to know when to buy and sell to avoid taking any significant losses on your investments.
Your Available Savings
Another practical consideration is how much savings you actually have set aside. If you’re looking at your total savings and not just what’s specifically for investments, also consider whether or not you have any other plans for your savings. For example, if you want to make some home improvements in the near future, you may prefer to set aside a smaller percentage of your savings for precious metals now.
Your Other Investments
Precious metals can effectively offset the risks associated with other investments. For instance, stocks are influenced by outside factors more than what’s common with precious metals. In this case, putting aside a larger share of your savings for gold, silver, or other commonly traded metals is worth considering. This is also generally true if your investment portfolio isn’t very balanced right now. Precious metals are a good way to accomplish this goal.
Your Experience with Precious Metals
There’s some natural degree of uncertainty to be expected if you’re new to precious metals. If this applies to you, you may prefer to start off setting aside a smaller portion of your savings for precious metals. As you gain familiarity with how these investments work, you can always put more of your savings into precious metals. On the other hand, if you’re an experienced precious metals investor, it’s easier to justify using more of your savings for this purpose.
Your Precious Metals Plans
Lastly, determine how much of your savings should go into precious metals by thinking about how you want to obtain them and what you plan to do with them. Keep in mind you can always mix things up with investments of this nature. Common options include:
• Hanging on to your precious metals to allow their value to increase over time
• Strategically buying and selling so you can add to your savings
• Varying precious metals choices so you’re not dependent on a single metal
• Investing directly and indirectly in precious metals (e.g., bullion, stocks linked to mining companies, gold and silver ETFs, gold bonds, etc.)
If you’re planning your precious metals investment strategies and looking for the best place to purchase Carlsbad gold and bullion, 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 precious metals can figure into your financial planning decisions. Give one of our experienced dealers a call today at (760) 253-8072.
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.