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How Much Gold and Silver Should You Purchase for Your Portfolio?

So you’ve decided to invest in precious metals. Congratulations! Now for the hard work of deciding what percentage of gold and what percentage of silver will make up your portfolio, and how much can you spend on acquiring gold and silver

Below are some general guidelines to help with your decision making with establishing your gold portfolio and your silver portfolio.

Understand Your Goals as an Investor

Before you create a gold or silver portfolio it is imperative that you are honest with yourself about what your goals are and how you can achieve them. 

  • Whether you are going for short-term gain or looking for a permanent long-term holding, either gold or silver is acceptable. In some cases, you might want both.
  • While precious metals spot prices are down considerably at this time, a rebound is guaranteed to happen some time in the future. Investing now will save your money and allow you to purchase more.
  • Determine how much you need to hedge to offset future downtrends in the stock market or in the economy in general.
  • Is your primary interest collecting? If so, your investment plan will need to reflect this. The main goal then will be to invest in pieces that have a higher overall value than a standard coin/round/bar.
  • Paper wealth is more volatile and risky than tangible asset wealth, especially where precious metals are concerned.

Alway prioritize your goals before you start working on your gold or silver portfolio. 

Amount Needed to Sucessfully Grow Your Portfolio

The CPM Group conducted a long-term study that works within the ideal reward/risk ratio for gold within the portfolio bunch. The research took place for 53 years and included all the bonds and stocks in which to include.

The research material states that the “sweet spot” for gold percentage within your portfolio will be around 20%. When it is about long-term investing it helps in providing the best balance between rewards and risks..

Focusing on gold allocation in the portfolio is important before you can make any further moves. 

How Much do You Need for Expenses?

Before you add gold or silver to add to your portfolio, you must learn how much you need in savings to continue to live your life as you currently live it. Itemizing your expenses will help you to get a glimpse of the amount you need to invest while buying gold or silver. Also, you should plan to invest enough to support you and your family should you or your spouse become unemployed or unable to work.

Visit BOLD Precious Metals to buy your gold and silver at best prices available online.