Some analysts recommend allocating between five and ten percent of your portfolio to gold and silver. Others suggest allocating up to 25 percent. That said, many so-called “experts” recommend investing in stocks, with an investment of 30 to 40% in precious metals. It is generally said that between 10 and 20% of that amount should be in gold and silver each, although that depends on you.
This assignment may be a little more confusing if platinum, palladium and other metals are also considered. So, be sure to stock up on silver and gold as “insurance” so that something like this will happen again. A general rule is to invest between 5 and 10 percent of your portfolio in precious metals. Consider it a life insurance policy.
You don't want to die; it's disaster insurance for your family. The same goes for investing in precious metals. That means that, at the current price, 50 ounces of silver would be needed to buy 1 ounce of gold. Even so, investment experts say that gold, silver and other precious metals, such as platinum and palladium, could make sense as a small part of a larger investment portfolio.
Investors who trade gold bars, silver ingots and other precious metals analyze the relationship between gold and silver as a sign of the right time to buy or sell a particular metal. If you're thinking of buying gold and silver as an investment or a way to make a quick buck, then you're buying them for the wrong reason. Yes, George, you can certainly speculate on gold (physical or on paper) and buy it in the hope of making greater profits. Alex, the data I've seen suggests that only 1 in 100 people buys physical gold and silver coins and ingots.
If you've been struggling to determine if you have enough physical gold and silver, GoldSilver has created a practical guide for you. The first step in determining the “right” amount of wealth insurance needed to survive an exchange bankruptcy is to identify a realistic price of gold in dollars if it were based solely on the real supply of foreign exchange and the amount of gold held by the United States Treasury and global central banks. In fact, silver prices have fallen by almost 25% over the past five years, while gold prices have remained relatively stable. For example, if there is little demand for cars, silver prices could fall, since it is not purchased in bulk.
Unfortunately, because the ratio between gold and silver fluctuates so dramatically, it can be difficult for novice or small-scale investors to read the signals and make a profit. In other words, you could buy more than 40 ounces of silver for the same price as half an ounce of gold. Silver is also “easier to purchase” because much of it is produced as a by-product of copper, tungsten and even gold mining. It caught my attention when you explained why you think gold and silver are undervalued in today's market.