No Single Right Answer
How much gold and silver belongs in your portfolio? The answer depends on your goals, risk tolerance, time horizon, and beliefs about the financial system. Here are the ranges different investors typically consider.
Conservative
5-10%
A modest allocation for diversification. Many financial advisors suggest this range as portfolio insurance.
Moderate
10-20%
A meaningful allocation for those who want more than token diversification into tangible assets.
Aggressive
20%+
Higher allocations for those with strong convictions about monetary policy or seeking significant tangible asset exposure.
Important Considerations
Precious metals don't pay dividends or interest. Higher allocations mean more opportunity cost—money not earning returns elsewhere.
Gold Can Underperform for Years
From 2011-2018, gold lost value while stocks tripled. Long periods of underperformance are normal and should be expected.
Diversification Works Both Ways
The same lack of correlation that protects during stock crashes means precious metals may lag during bull markets.
Consider your allocation in the context of your entire financial picture, not in isolation.
Metal Mix Frameworks
Once you decide on a total precious metals allocation, how do you split between metals?
Stability-Focused
70-80% Gold | 20-30% Silver
Prioritizes gold's lower volatility. Silver as a smaller complement.
Balanced
60% Gold | 40% Silver
Balances gold's stability with silver's potential upside and industrial demand.
Silver-Heavy
40-50% Gold | 50-60% Silver
For those who believe silver is undervalued relative to gold. Higher volatility—not for everyone.
Savings vs. Investment
Some investors distinguish between their investment portfolio (stocks, real estate) and their savings (cash reserves, stable assets).
In this framework, gold serves as a savings alternative—a way to hold purchasing power outside the banking system. The "right" percentage depends on how you categorize precious metals: as an investment seeking returns, or as savings seeking preservation.
Want to Talk Through Your Allocation?
We can discuss your situation, goals, and concerns to help you think through the allocation decision.