A rule of thumb is to limit gold to no more than 5 to 10% of your portfolio. Depending on your situation and risk tolerance, you may feel more comfortable with a larger or smaller share of gold in your portfolio. The proportion of your portfolio that you dedicate to precious metals depends on your risk sensitivity. In general, we advise our clients to use 5 to 15% of their portfolio of precious metals.
Peter Schiff has always recommended holding 10-20% of an investment portfolio in physical precious metals. But how much of that percentage should be in gold and how much in silver? An allocation to precious metals can be an attractive risk management tool. Precious metals can be a dynamic and multi-faceted hedge against many types of risk.
They also have a track record of weakening investor portfolios against sharp market declines (chart). This is particularly useful for long-term investors who want to hedge against a wide range of known and unknown risks. Instead, Cramer has created five stocks that shield a portfolio and at the same time generate maximum profit. First, every retail investor should have no more than 10 to 15 stocks, which consist of high-yield stocks, growth stocks, speculative stocks, a healthy geographical stock, and gold.
Talk to your financial advisor about investing in popular low-risk gold or precious metals ETFs before you start investing in gold and precious metals. The easiest way to add gold to a portfolio is with an ETF called SPDR Gold Shares, commonly known by the symbol GLD.
