When it comes to investing in precious metals, there is no one-size-fits-all answer. The amount of gold and silver you should have in your portfolio depends on your individual situation and needs. Research has shown that the “sweet spot” for the percentage of gold in a portfolio is 20%, but some experts recommend allocating anywhere from 5-25%. Investors may have different goals or objectives, different risk tolerances, different views on the economy, and different ideas about portfolio diversification.
Peter Schiff has always recommended keeping between 10 and 20% of an investment portfolio in physical precious metals. But how much of that percentage should be in gold and how much in silver? The spot price of gold simply refers to the price at which you can buy gold at any time in the open market. Gold comes in varieties or fineness gradients based on the gold content in the ingot or coin. Because there are some very clear differences between physical gold ingots and other “paper gold” products, it is important to understand these differences before investing.
Your percentage allocation to gold may also change as the price of gold and silver and your other investments rise or fall. Gold, silver and other precious metals can be kept in IRAs and other retirement accounts, such as an individual 401 (k) and an SEP IRA. Investors treat gold more like a currency than silver, a metal that has many more industrial uses than gold.