How Much Gold and Silver Should You Consider Owning?

How Much Gold & Silver Should You Consider Owning?


Written by John Rothans

Nov 13, 2019

Some analysts recommend allocating five to ten percent of your portfolio toward gold and silver. Others suggest allocating up to 25 percent. So how much gold and silver should you own? It depends on your situation and needs. The allocation will differ for every individual. To help you decide how much gold and silver you may want to consider owning, we’ve gathered insights from across the country.

How Much Gold Should You Consider Owning?

Recommendations for how much gold you should keep in your portfolio vary.

Looking at gold, silver, and other precious metals, financial blogger Len Penzo points out that many experts recommend holding 10 to 20 percent of your net worth (excluding home equity) in precious metals.

Jerry Wagner, founder and president of Flexible Plan Investments LTD., agrees with Penzo. In 2013, he launched the first and only registered mutual fund offering exposure to gold bullion and argues that a “20 percent allocation to gold is the appropriate exposure for a traditional portfolio of 60 percent stocks and 40 percent bonds.”

Free-market analyst Harry Browne pushes this percentage still higher, advocating for a portfolio that’s equally comprised of stocks, bonds, gold, and cash—putting each allocation at 25 percent.

Meanwhile, market guru Jim Cramer, host of CNBC’s Mad Money, suggests maintaining a gold allocation of up to 10 percent.

“I think that 10 percent is the upper limit because I consider gold as an insurance policy, and no worthwhile insurance policy should be 20 percent of the money you have [in your portfolio],” Cramer says.

Nicholas Colas, the co-founder of DataTrek Research, also believes in an upper limit of 10 percent for gold allocation.

“Gold does tend to provide diversification benefits during periods of inflation and/or market stress,” and greatly appeals to those who are “passionate about the risks they see in the economy and the stock market,” writes Colas.

MarketWatch journalist Mark Hubert assigns a lower allocation to gold: four percent.

Hubert says four percent “is a good place to start in determining your portfolio’s default allocation to gold. You would deviate from that allocation only if you believe you have reason to believe that investors worldwide, collectively, are wrong about gold’s [price] relative to the stock and bond markets.”

Personal finance website The Balance strikes a balance, recommending a range of five to ten percent for holdings in gold.

“Depending on your situation and your risk tolerance, you might be more comfortable with a bigger or smaller share of gold in your portfolio,” the website notes. “In the end, gold can make a fine addition to your portfolio—as long as you know why you’re including it, and it helps you reach your long-term financial objectives.”

How Much Silver Should You Consider Owning?

As noted by CoinWeek columnist Al Doyle, every American should consider owning at least a little silver. But how much of your portfolio should silver make up?

John Roberts, founder and CEO of LiveLearnAndProsper.com, settles on six percent as his allocation for silver, with a recommendation of two, four, or six percent as a starting point (depending on your risk tolerance).

“Of course, everyone’s situation is different. So you’ll need to decide…what works best for you,” Roberts writes.

GuruFocus.com suggests an overall 10 to 20 percent allocation of precious metals, with silver making up a 30-percent share of that allocation if you’re aiming to preserve wealth.

“Silver and gold belong in every balanced portfolio. There’s no magic percentage of silver and gold you should include,” GuruFocus.com advises. “Adjust your position in silver and gold according to your goals, your age, and the size of your savings.”

What does that look like? If you’re growth-driven, you may want to allocate as much as 70 percent to silver and 30 percent to gold since “silver has a higher growth ceiling than gold.” And if you’re holding precious metals for the long term, “you have a greater chance of seeing a silver bull market,” GuruFocus.com suggests.

Bottom line: The right amount of gold and silver will vary from person to person, portfolio to portfolio. Choose the precious metals allocation that brings you—no one else—peace of mind.

Everyone has different financial goals and a different tolerance for risk. The allocations we present here are aimed at helping you find your ownership percentages for gold and silver. Markets change regularly, as do your life and your allocations. Call 1-844-307-1589 to get started.


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