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What percent of net worth in metals?


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I thought it would be interesting to find out from the forum what percentage of your net worth you keep in metals. I went to a financial  planner last fall and was amazed at his answer. He said 20 to 25 percent of your net worth should be in silver and gold. This surprised me. Another financial planner with a different company a few years ago told me to not own any gold or silver, just be diversified in stocks. If I own all stocks and nothing else how is that diversified? They are all stocks. To me that like saying I went to the store and bought 8 different types of fruit and all 8 are different types of apples, yes they are different but they are all still apples.  As far as me I have around 50% in metals. Got to go my wife is taking me trout fishing

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The figure I use, suggested by many financial folks, is keep your PMs to 10% maybe stretching to 15% but that's it.
Also PMs tend to be treated as very long term investments say 15 - 20 or more years.
There will always be accounts of flippers that buy and sell regularly making money on the way but it only takes one event to backfire and all gains are wiped out.
Same story with day traders on the stock market - 9 wins in a row then one big loss - might as well play roulette betting on a single colour.

Just read an informative report published by Hargreaves and Lansdown.
Message is quite clear - DIVERSIFICATION meaning don't place all your eggs in one basket - 25% in PMs seems way too high risk.
 

 

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as much as your understanding of the precious metals

allows you to diversify.

(belangp youtube)

(knowledge is the key here. a one off lucky choice will

only take you so far but a good understanding will allow

you to repeat the process in future educated guesses)

 

those who choose to not learn can join the majority and

stay ignorant of any chances of success.

 

HH

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Personally, all of my spare disposable income each month goes on silver/gold.

I have a SIPP that my employer funds fairly generously, that’s my diversification, along with the house.

I can’t bring myself to spend my spare cash on stocks/bonds etc., dull, dull, dull.

My enjoyment of precious metal purchases (and sales) mean that ultimately I have accrued much more stored wealth than I would ever have done buying stocks.

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To answer this question it is perhaps better to rewind a bit and understand the concept of modern portfolio theory and how portfolios with different mixes of various assets tend to behave overall.

This is a great website which you can see how with various portfolio mixes will give you a smoother ride with only a slight reduction in long term performance.  In financial-speak, we say that you are getting better risk-adjusted returns. 

https://portfoliocharts.com/portfolios/

So the question of how much you should allocate to gold depends on how comfortable you are with volatility in exchange for longer term growth.

You may also want to look at this thread:

 

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I'm currently

21% physical PMs
5% paper PMs
7% gold miners

These percentages will come down over the next couple of years as I buy more paper/income assets, although in terms of absolute amounts they will still be slowly increasing

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Pretty much all my disposable income goes into gold and siver, I view it differently than most in that I used to be a problem gambler so cash never lasted long whereas gold and silver can easily be swapped out for cash but not easily enough that I don't have time to have a good think about it first, I swapped out 4 oz of gold with ease but that was to purchase a car not to piss away like I used to do.

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