Gold and silver investments are often recommended by financial advisors, but just how much should you invest in to get more bang for your buck?
In terms of which metal to invest in, it’s best to do as much research as possible, specifically into the type of precious metal you are considering. Be it gold, silver, platinum or palladium, be sure you do your research and take into account the standings of each metal market. More often than not, gold does far better than the other metals available, but it is not to say that investors would not fare well by diversifying their financial portfolio by having various metals in their possession.
As with any other type of investment, its best to look at your overall financial state (i.e. income, budget, etc.) as well as how much time you have before you would like to see or need to see a return on the investment. Also consider your overarching objective. Most financial planners advise arranging your financial portfolio in the following manner:
- 1% of your money as cash or “cash equivalents”
- 39% to be immediately allocated to your fixed income (bills, household, personal expenses, etc.)
- 50% in U.S. and International Equities
So where does that leave you with the remaining 10%? Well, if not considering precious metals, then it is best to allocate the remainder of the 10% to cash or “cash equivalents.” If seeking to invest in gold, silver, platinum, or palladium, then most professional financial planners say to put that 10% in the precious metals market. Most investors who opted to invest in gold saw an increase of 2.17% on their gold investment returns when placing faith in the gold market rather than cash equivalents.
In the end, it is always advised to seek professional advice when planning out your financial future and to invest in the areas that make the most sense for you and your budget.
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