A general rule is to keep gold at no more than 10% of the total value of the account. Previously, gold moved in the opposite direction to the US dollar, so some investors use it as a hedge against inflation. 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. Precious metals can offer protection against inflation: gold, silver and other precious metals can offer protection against inflation or rising prices. Inflation, or fear of inflation, always worries investors. This is because rising prices can erode the purchasing power of money and make everything relatively more expensive.
The idea of owning assets that can rise with rising prices is generally comforting for some investors. Always keep in mind that if you buy gold, it is to resell it in the future and convert it. You'll convert the profits (of your gold) to buy an undervalued investment, build a family home, buy a vacation home, or supplement your income during the crisis. This point represents the starting point for knowing if you will have enough ounces.
Ask yourself “Would my possession of precious metals be enough to maintain my standard of living in the event of a crisis? However, it's worth noting that if your short-term outlook for the overall economy is very positive, keep your investment in gold to a minimum, as you would expect the price of gold to be affected as the world economy recovers and begins to grow at a faster rate. Another interesting approach to deciding how much gold you should allocate to your investment portfolio is to measure the percentage of global financial assets represented by gold bars.