What % of assets is recomended to be in pm's

Al21

and how much in cash.....trying to explain to my wife that cash is devaluing every day. She is a wonderful wife, but a very conservative investor.

derryb

Depends on your goal.

sounds like you are trying to preserve the value of your savings. This is why I hold PMs. I only keep enough cash to cover three month's expenses, everything else I protect value with PMs. When I need to make a purchase outside of my budgeted cash supply, I cash in some PMs for the needed cash. When my cash supply exceeds three month supply, I convert excess to PMs. Been doing this since 2006 and have never regreted it. Success will depend fully on continued PM bull market and continued dollar devaluation - I don't see an end any time soon. Think of PMs as a certificate of deposit (bank CD) with no counterparty risk and with much better returns.

I showed my wife this gold chart and asked her "what will $282 you had on Jan. 1, 2000 buy at the grocery store today." Then I show her that if it had been put into an oz. of gold in 2000 it would be worth $1700 today and ask her " would you rather have the $282 (plus some savings account interest minus a lot of devaluation) or the $1700 when go shopping today?"



Regardless of what the gold naysayers have to say, this has been the long term trend for PMs. The long term trend for the dollar's value shows an inverse history. Will this change? If so, why and when?

pursuitofliberty

I don't know if there's a good "recommendation" here ... ask 20 and at least a dozen answers will probably appear

For my situation, my stack is larger than my liquid reserve account (regular checking and savings), but much smaller than the combination of my "at work" investments. I look at the stack as cash preservation attempt, not so much of an investment vehicle.

yellowkid

Different for everyone, a lot of money managers now recommend a 5 or 10% allocation, I'm in that range but I have a lot of "non producing" assets ( antiques, land) and feel that a lot of it works about the same as gold as far as inflation is concerned, if I didn't I would probably have more in PM's.

Yukoncornelius1

I've got 15% of my assetts in precious metals which I think is enough.
I've got 60% of my net worth in real estate of which 55% is farmland and the other 5% being my house.

derryb

OP's question concerns ratio of cash and PMs.

Jinx86

For myself I have 3 months income in savings +/-, also a small fun money account...I like to spoil my wife. As for PM's Ive been told 10% of net assets, which to me seemed quite a bit till I decided not to include farm land in the equation.

Yukoncornelius1

<< <i>OP's question concerns ratio of cash and PMs. >>



Cash to me is worthless, I have $5,000 in a savings account making 0.1% interest and $1,500 cash locked up in my safe at home for emergencies.

So to answer your question I have less than 1% of my assetts in cash as I consider it a complete waste of time.

I do however have more money invested in guns and ammo, probably around $10,000.

Amigo

I've given 48 toz of platinum and gold to my 2 kids. All of it acquired back when gold was under $300. They're both still holding it.

I still have about 8.5% of my assets in PM's. I'm not saying that's good or bad though. PM's could fall just as easily as the Dow plunging down to 7500

Back in fall of 1978 before gold started climbing much .... I was just out of the Army as a single man, having saved most of my military pay since I was a foot soldier and had almost no time to spend it , arrived back home just long enough to sell my hobby drag car for cash ........ Then put 100% of my assets into Gold by Oct 1978. Not because I was such a genius, but because I was going out of country for new employment and figured it was the best place to keep it. I was deployed to Iran earlier in the year and was enamored with all the piles of gold coins in the bazarr (sp), that's where I bought my first gold coins (still have them, just can't find them, lol). My employment ended, came back to the US, and sold all of it besides the iranian gold within a couple dollars or so of the high. It was all luck. Nevertheless, it got me hooked on PM's ....... that's partly why I loaded up so heavily when it hit around 260 in 1999. I figured if all the central banks were selling, it was a great time to buy and do it all over again. I haven't sold any gold yet.

It's really hard to recommend any particular percentage of pm assets. It all depends on your own personal situation more than anything.
At this stage in my life , I certainly wouldn't do 100% again. In addition, I'd be cautious at these levels. I don't care what anyone says, I'm completely convinced the PM markets are manipulated. That's not to say that someday the demand won't be so great that the physical can't be manipulated. Which is exactly what I think will happen in the coming years due to China / India buying. I doubt gold will ever be 260 again in my lifetime, and I plan on living another 40 yrs.

It's late, I'm tired, so if none of this makes sense, it's not your fault.

tneig

That question, in and of itself, indicates to proceed very cautiously, moving up to 10% while learning as many aspects of the PM market as possible, even learning from a few mistakes along the way.

Purpose! - How to buy, what to buy, how to hold, store, and how to liquidate are all very key items one should have some knowledge of, and be able to make and substantiate opinions in methodology of, in this learning curve. Each person's safety minimum and skill set is different, and I think even the common 10% recommendation is something to adjust as they learn the basics. Then with a better footing, the gained knowledge dictates how far to go for that Individual.

It took me from Jan till now to get that 10% and I have learned to take every forward step more carefully then the past one, knowing that I barely yet have the knowledge to handle 10%. And knowing I have to learn 10% more for each single-percent above this as I go. Its a lot of work and it doesn't come easy, but it can all go very easily, as hugh mistakes can be made! If a person is at 50% and they don't have a clear handle on it, then its no safer than stock, mutual funds, land, or whatever. In the coming decades, those that don't have a good handle on what they have, will be losing it.

So to summarize my answer:
10%, on Up to what one can handle with the knowledge and experience required for that percentage.

jmski52

If you read tneig's response and then look at the chart derryb showed, you should be able to deduce a good answer.

I'd look at your cash needs for at least 6 months, and put the rest into metals. BUT, I'd take maybe as long as 5 to 10 years to get there. In other words, I'd go slowly and watch what happens in the economic and political environment as time goes by, and make adjustments as necessary. If something significant changes, like a balanced federal budget or something like that, then you might never make it to 20%.

I certainly wouldn't plunk 50% of my net worth into metals all at one time, but I wouldn't hesitate in the least putting a larger and larger percentage into them if current trends continue. At the same time, remember than no decisions should EVER be carved in stone.