How Much Gold and Silver Should You Buy?

    Published: 06-16-2009
    Views: 13,257
    Michael Maroney, Vice President at Monex Deposit Company, gives tips on how to determine the amount of gold and silver you should add to your investment portfolio.

    Michael Maroney: Hi! My name is Michael Maroney. I'm the Vice President at Monex Deposit Company. We're discussing creating lasting wealth with gold and silver. We'll now discuss how much gold and silver is enough for you. The first thing every individual investor needs to determine is their risk tolerance. They need to understand the value of their portfolio and how they believe gold and silver will perform within that portfolio. So of course, the essential question of how much gold and silver is enough is really up to you, the individual investor.

    If we were to use Modern Portfolio Theory to determine how much gold and silver should be in your portfolio, the answer would be somewhere between 9 to 12.

    5%. There are numerous advisors out there that will tell you in today's environment somewhere between 15 to 25% of your portfolio should be in precious metals, but needless say that decision is up to you. How should you start adding precious metals to your portfolio?

    The most important thing is that you're comfortable. Buy some, take delivery of it, sleep on it. See if it makes you feel more comfortable. If at the end of the day or at the beginning of the morning, when you wake up, you'll feel very comfortable and believe you should buy more, buy a littlie bit more. Determine approximately how much you wish to own and develop strategy that allows you to purchase that percentage over the course of time. Then determine the value for your portfolio. Determine the percentage that you feel will give you the best possible blend which will allow you the protection of only gold and silver and also give you an opportunity to profit, based on the current conditions. Then of course, you need to determine your risk tolerance.

    Are you planning on passing on wealth to future generations, and what do you think sits out on the horizon. All of these are very important variables and factors that must be considered when calculating what's right for you. The bottom line is only you can decide how much gold and silver is right for you. Needless to say, I only hope that the information that we shared with you today will help you to make a quality decision and obviously, give you an opportunity to look to the gold and silver market as a way for you to provide protection for your portfolio.