Peter Schiff has always recommended maintaining between 10 and 20% of a portfolio of investments in physical precious metals. The part of your portfolio that you dedicate to precious metals will depend on your risk sensitivity. In general, we advise our clients that between 5% and 15% of their portfolio is dedicated to precious metals. The research showed that the “sweet spot” for the percentage of gold in the portfolio is 20%.
In the long run, this provides the best balance between risk and reward. The specific amount of your portfolio that should be dedicated to precious metals varies depending on your circumstances. Some people may do well with up to 20% of their precious metal investments; however, others may do better with as little as 1%. The easiest way to add gold to a wallet is through an ETF called SPDR Gold Shares, commonly known by its symbol GLD.
Talk to your financial advisor about investing in popular gold or low-risk precious metal ETFs before you start investing in gold and precious metals. Readers should probably never consider gold as a fundamental stake in their respective portfolios, as gold and complementary metals can be erratic, pay no dividends and, especially in physical form, can pose a liquidity challenge.