Sort of a PM question ... but does anyone try to maintain a certain % of weath in precious metals?
Dave99B
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I've heard people say 5% is prudent. Seems high to me. Not talking rare coins here, just metal.
I've been stuck at around 2% for years...it's hard for me justify holding more than that, since it just sits there collecting dust.
Dave
Always looking for original, better date VF20-VF35 Barber quarters and halves, and a quality beer.
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No, not a metal bug but what you hear is directly the result of the massive bubble in financial assets. The one we have now which has lasted almost non-stop since 1982.
I buy and sell precious metals just for fun. It is an easy way for me to save for stuff and have fun while doing it. For example, my last big sale of precious metals was used to buy a tractor. I just buy precious metals when the price is right or I have extra cash. The majority of my assets are not in coins or precious metals.
I thought about this for a long time and decided that I would only dabble in PM's (gold and silver only) for fun. I have other hedges in place on my financial assets so having a large percentage in metals does not make sense for me as long as the US dollar is the preferred world currency.
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I don't consciously try to keep a 7% position, or anything like that. But, no doubt, a percentage of my net is in metals....
double digits here.
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My goal is 2%-10% of net worth depending on where I think the economy is going, but I've had to try hard just to keep it above 2%. Real estate has been getting the share that PMs would normally have.
Great question and I guess it depends... If I had a lot of debt, I would pay that off before I ever started stacking PMs. Once out of debt, I may then consider taking the payments i was making to pay off debt and apply directly to investments. I think it also depends on how old you are. If you are young, you may want to invest in riskier investments because you have time to recover, or better yet, make your $ work for you.
I imagine some folks consider PMs somewhat liquid so they may only compare their PM assets to liquid assets, for this exercise, that are easily converted to a federal reserve note vice those held in retirement accounts. To make it more complicated, should you include the value in your house, requirement accounts, personal property, etc..?
There you go, it all depends.
I've never done an assessment out of fear of knowing
as i sold a majority of my collection to refinance my house years ago.
I don't have any just bullion right now, but I've caught two silver spikes and I do wonder if I'll live long enough to see another. If silver plummeted I think I'd stack a couple thousand ounces, but it's no where near a priority.
Most of my assets are tangible, primarily rare coins and real estate, so I have more than enough of a hedge against inflation. Bottom line is that I try to keep 0% in precious metals.
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None for me.
Yes, but only about 2%.
My grandfather was a strong believer in 10% of net worth. I sell the stuff as part of my "job" and I typically only push 2-5%. In modern economic times real wealth has been made in the markets and real estate. I made a great sum during the run up 2009-2011, but quickly turned those profits into stocks at a discount. Since then Ive accumulated more metals, in hopes of the same.
Yes. 5-10% physical at all times but can lift hedges and move to 15-20% physical within minutes.
That's where I'm at. I would much rather have collector coins.......Like Barber Dimes, Quarters & Halves!
To me, most precious metals are not much different than currency in that their only value is in the perception of their value. Silver and gold don't have much of their value based on actual usefulness. Platinum maybe a bit more so. Nevertheless, I don't keep any precious metal as part of my investment portfolio, aside from what little bit some of my mutual funds may hold.
I currently keep 0% in metals. If I could keep less, I would.
No.
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No more than 2%, currently less than 1%
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PM’s have been good to me over the past 20 years. I’ve been as high as 20% and as low as 5%. I’m hovering close to 5% now. Not that I sold anything it’s just that other assets have done well the past 10 years. ( real estate, Amazon, Apple, Facebook etc)
I’m a second generation American. All 4 of my Grandparents came over on “the boat” together from Poland and became next door neighbors. They lost everything in the depression and had to rebuild from there. I was always taught the value of a dollar and not to put all my eggs in one basket. Gold/ hard assets was always thought of as insurance for cash. That’s how we roll to this day
m
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A single digit percentage, mainly gold, but a fair amount of silver as well....Gold is money....Cheers, RickO
A percent, or two maybe.
I do have a handful of gold coins and a compete set (1986 to 2019) of "rolls" of ASE's but I really don't consider PM as an investment strategy in my portfolio.
Boy, that says a lot. I can't imagine paying 18% on a credit card and buying metals at the same time. Credit card debt is a concept I just can't get my girlfriend to understand. I stopped trying long ago.
I don’t pay attention to the percentage of wealth my PMs hold. Like others, it’s not an investment for me. I have mutual funds and IRAs for that. PMs are just a place for me to park money and to diversify my portfolio. When I’m gone, I don’t want to leave my kids just a sum of money. Money, real estate, physical gold and silver, coins, etc. I think it will last them longer to have a wide range of assets.
In relation to total numismatic investment: 25-50 pct.
I'm sorry, but 2% to 5% is just ridiculous for financial insurance (or investment).
Why bother?
Either have nothing at all or have upwards of 25%.
2% isn't going to save you if the house of cards collapses.
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There was an article online yesterday that claimed the uber rich were starting to stock up on physical gold because of stock market fears. I couldn't imagine stocking up at current prices. Buying a bit here and there maybe but going "all in", no.
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Only well armed farmers with a lot of supplies will last a little longer in the worst case scenario of course.
If you're referring to 'just' a serious US currency devaluation, then I agree metals stored at your house will help for a little while.
If we are talking about end of world I would collect Ammo and Medicine then would you would be able to trade for every thing you need if we are talking retirement gold less than 5% it’s not going to grow at the rate needed for a secure retirement and don’t take on debt to buy it that’s defeating the whole purpose
https://www.pcgs.com/setregistry/quarters/washington-quarters-major-sets/washington-quarters-date-set-circulation-strikes-1932-present/publishedset/209923
https://www.pcgs.com/setregistry/quarters/washington-quarters-major-sets/washington-quarters-date-set-circulation-strikes-1932-present/album/209923
Very small percentage, less than 0.1%.
Nothing significant.
The following indicates why:
Most of the bullion I have is silver bars, the gold is mostly numismatic.
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You'd laugh at the % of a goldbug.
They'll laugh a helluva lot longer, but you'd still laugh.
I carry no debt. If I did I would not have gold, silver, collector coins or baseball cards as they are not investments. These for me are disposable cash only hobbies that I enjoy greatly. With that said my hobby interests do tie up about 10% of my wealth.
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I’ve never looked at precious metals as an ‘investment’. If it is an investment, it’s a damn poor one. I’m more interested in having some as a safeguard in case of a complete meltdown. Think Germany in the 1940s. Paper becomes worthless. Not likely, of course, but statistically possible.
Having 20-25% of my assets in PMs would seem crazy to me. I’m not ready to do that, or build a bunker in the back yard for that matter!
Dave
Been in metal ( of differing compositions, or another) , all my adult life. Should have been a natural born steeler. But I make money in the stuff...and lose it, too.
It's not that precious. It's a trade.
I own a house and a car and business. And my offspring own me. I'm happier than I appear on the outside.... thanks in part to "real money". ( the stuff my banker loans me
), which serves a hobby and business.
I recommend ownership.
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I'm not counting numismatic gold as part of this question btw, just bullion.
Sorry. I was in the numismatic part of the site. I stack for Armageddon.
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I would concur with your logic. I am not expecting the collapse so therefore do not plan for it.
Warren Buffet has billion$ that he doesn't know what to do with, but he aint buyin PMs.
You wouldn't know if he did.
Those trains need steel wheels and so he spends billions on metal, to keep rollin'. But you knew that, Bajj. And gold just sits there. It's too soft for serious industry.
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I've often thought of stacking but never have, as I am too entrenched in the rare coin market, as opposed to the PM market.
Maybe sometime in the future......
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True dat. He doesn't believe in them for one, at least not now. I did see something the other day about the uber rich buying gold, but no names were given.
https://buygoldandsilversafely.com/gold/the-wealthy-are-buying-physical-gold-by-the-ton-why-arent-you/
Some people think of it as "insurance". Personally, I think that analysis is rooted in dynamics that may not exist anymore. But my personal feelings aside, if you think of it as insurance, then the fact that it doesn't yield returns ("collecting dust") is not a problem and you can keep however much you think is prudent for your "insurance" needs.
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That is not the stash he's talking about. Berkshire is sitting on $120 billion+ in cash which is separate from his ongoing business needs.
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So, if I have a net worth of $10 million, $200,000 in gold wont "save me"?
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I'm guessing the article was from a gold trader site and anecdotal. Gold is generally not where the uber rich put money for safety. If they actually are, then buy bullets because the end is nigh!
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You can short it if you want.
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