Answer
Feb 24, 2025 - 03:50 PM
If you were to take a cross-section of advisors who recommend gold as part of an investment portfolio, you would find their preferred level of diversification would range between 5% and 30%. Of course, how high you go within that range depends upon how concerned you are about the current economic, financial, and political situation. Analyst Michael Fitzsimmons offered an interesting take on how much gold is enough in a recent Seeking Alpha editorial, “Assuming a well-diversified portfolio (which does include cash for emergencies),” he says, “my belief is that middle-class investors (net worth under $1 million), should own at least 5-10% in gold. I also believe that as an American investor’s net worth climbs, the higher that percentage should be because, in my opinion, he or she simply has more to lose by a falling US$. For instance, an investor with a net worth of $2-5 million might have a 15-20% exposure to gold; $10 million, perhaps a 30-40% exposure.”
