How Much Of One's Cash Assets Should Be Put Into Precious Metals?

[Glenn B]

I have been buying gold & silver bullion ever since I departed NY and wound up here in Texas. I had a small amount of it already when in NY but when I separated from 2the wife, I sold it all and we split the proceeds. Right now, I figure I have maybe 2.5% of my total cash assets in those metals. I figure that is way too low in the event we become the New Venezuela or the new pre-WWII Germany and it seems we may be headed that way or even toward a worse situation. Even if the Rebooblikins annihilate the dimokrats in the midterm elections, the damage has been done by Biden and will need a miracle worker to repair, so an economic collapse may be inevitable. So, I am trying to get some insight on what investor types believe is a good percentage of ones cash assets to put into bullion, primarily gold & silver and how much of a percentage into each. Right now, the percentage of each of only my bullion assets are 40% gold, 60% silver but as I said they amount in total to only about 2.5% of my cash assets.

I wish I had bought the ounce or two of Rhodium that I had been considering purchasing back in about late summer to fall 2016 or so, especially when it was as low as $598.00 per ounce in August 2016 (source). Back then, I bought silver and a bit of gold - shame on me. Today, Rhodium is going for around $15,000.00 per ounce and was around 26K per ounce in April of the past year. (Same source as above.)

 

[Renegade]

Prices are at highs, so now is the wrong time to buy.

My guess is when SHTF and gold is skyrocketing, lead will still be more valuable to have. I inherited some gold/silver, but I would not buy any.

 

[Darkpriest667]

silver and gold are highly manipulated. Gold should be about 30k an ounce.

 

[gll]

If you are holding too many cash assets and really think you need to get out of those, other than real-estate, and if you already are covered in guns and ammo, I can't think of a better place to put those dollars than in gold... even at today's prices.

You could lose some value in the short run, it might underperform against some stocks if S doesn't HTF, but in the long run it will probably keep most of it's value at worst and come out the other side of whatever happens OK.

Though silver may well be undervalued relative to gold, it loses as a store of value, IMO, due to it's weight to value and storage considerations.

If you are convinced 2.5% of your assets in metals is too little, just start buying and buy until it doesn't feel right...

 

[DoubleDuty]

Better be sure your gold is actually being held for you. Alot of scams in precious metals.

 

[Hoji]

Better be sure your gold is actually being held for you. Alot of scams in precious metals.

This. If I can’t pick it up and put it in a canvas sack with dollar signs on it it is just a do the needful scam originating in Mumbai

 

[Fishkiller]

If gold is so valuable why are people selling it?

 

[Hoji]

If gold is so valuable why are people selling it?

Easier to pay for goods and services with fiat currency than gold.

 

[IXLR8]

Just make sure that you are purchasing at the melt price, and not the numismatic price. I would personally buy in pieces that were sized for barter rather than bars.

Beware of fake gold. There is a lot of gold plated tungsten. Use a reputable dealer and there nondestructive machines that can tell you the purity in seconds.

I think Platinum is a better deal right now.

If you want to see fraudulent gold, there is plenty on eBay.

 

[baboon]

I like the 1 gram & 1/10 of an ounce portioned out in card form of gold. When food gets stupid enough to cost an ounce, I will have been robbing people of they food.

 

[seeker_two]

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[Coyote9]

I split my metals between silver and gold, the silver is better for smaller barter. I also keep 5000 Euros and 5000 Swiss Francs. I would like any info on Canadian dollar forecast stability , any input?

 

[ATN2]

It should not be allocated based on "cash" assets.

Your asset allocation should include all of your assets in total. Precious metals generally are recommended to be between 5% and 15% of your total assets so it might be lots more or less of your "cash" assets. If you have half of your total net worth in cash, then precious metals could be between 10% and 30% of your cash.

 

[alwho421]

can't eat any of that stuff
shtf it'll be the best of humanity or the worst of humanity.
I'm betting on worst.

 

[ATN2]

can't eat any of that stuff
shtf it'll be the best of humanity or the worst of humanity.
I'm betting on worst.

I guess I'm missing your point

 

[pronstar]

silver and gold are highly manipulated. Gold should be about 30k an ounce.

Yeah there’s around 500x more paper gold than physical gold in existence.

When SHTF and people start trying to cash in their paper claims, things are gonna get real.

Also folks should consider that China and Russia are buying gold, and mining it, at a furious pace.


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[Darkpriest667]

Yeah there’s around 500x more paper gold than physical gold in existence.

When SHTF and people start trying to cash in their paper claims, things are gonna get real.

Also folks should consider that China and Russia are buying gold, and mining it, at a furious pace.


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that's what I mean. it should be worth much much more than it is. It's highly manipulated.

 

[Tnhawk]

If you are holding too many cash assets and really think you need to get out of those, other than real-estate, and if you already are covered in guns and ammo, I can't think of a better place to put those dollars than in gold... even at today's prices.

You could lose some value in the short run, it might underperform against some stocks if S doesn't HTF, but in the long run it will probably keep most of it's value at worst and come out the other side of whatever happens OK.

Though silver may well be undervalued relative to gold, it loses as a store of value, IMO, due to it's weight to value and storage considerations.

If you are convinced 2.5% of your assets in metals is too little, just start buying and buy until it doesn't feel right...

I prefer a portion of my precious metals be in the form of lead. When someone suggested I purchase silver, I responded a small amount of lead could take his large amount of silver.

 

[Tnhawk]

Yeah there’s around 500x more paper gold than physical gold in existence.

When SHTF and people start trying to cash in their paper claims, things are gonna get real.

Also folks should consider that China and Russia are buying gold, and mining it, at a furious pace.


Sent from my iPhone using Tapatalk Pro

Paper is just that - paper. Only good if someone honors it.
The precious metals I have are physically in my safe.

 

[Glenn B]

Better be sure your gold is actually being held for you. Alot of scams in precious metals.

No one holds it for me. I do not buy gold shares or whatever they are called, I buy physical bullion from the American Precious Metals Exchange (APMEX), one of the largest, if not actually the largest, ecommerce bullion dealer in the US. I have it shipped to me, then I secure it in different secure locations accessible to me. Having someone else hold it for me would defeat the purpose - having it for an emergency.