amount of gold and silver in a portfolio

[sweetapogee]

Looking for opinions. I'm a cautious investor and have roughly 60% in stocks 30% in bonds, 10% in cash. Our holdings are mostly index Mutual funds and ETFs, some in our 401Ks some in a taxable brokerage account, a very small amount of single stocks only about $2K worth, really just for fun.

The 10% that is in cash...

We have reached the point where we have a really healthy amount in cash (in a HYSA) and are considering buying some gold and silver instead of continuing to add to our HYSA. I understand that the PM market is volatile and not a good "investment" but still I think if 10% of our portfolio is cash and we are well funded overall, that 10% could be divided in half cash and metals. What is the consensus? FYI retirement is 6 years away. We would not use any of the accumulated cash to buy metals, just DCA going forward.

[3Hotdogs]

1. As I see it, the problem with physical gold is the buying and selling commissions.

Probably 10 -15 % each way. If so, the price of the gold. has to increase 20 or 30% before you see any profit.

Of course, there is the fun of holding a bar or coin in your hand.

But if it's really an investment, consider a gold index fund. These should rise and fall with inflation and only involve the commission to the broker (which may even be free) and any maintenance fee.

[no_hypocrisy]

2. Will the federal tax on the sales be part of the 20-30% commission?

Selling gold is like selling stocks. You pay for the profit of the sale(s).

[3Hotdogs]

3. Tax should be on the net profit.

.

[no_hypocrisy]

4. And would it be separate from the commission fee?

[sweetapogee]

6. OK

Thank you for taking the time to input. Maybe my OP question was a little disorganized, I'm looking at this from the perspective of savings not an investment per se. But to the premiums may I say on 1 oz gold the current premium on American Gold Eagles is roughly 4%, Canadian ML 3%, SA Krugerrand is 2.8% and a (PAMP) bar in assay is 2%. This is low I think because there is more selling right now than buying.

[3Hotdogs]

7. You would get hit with a higher premium when you sell because the gub'mint

won't buy it back. You have to sell it on your own or to a gold buying store.


If I were buying gold from treasury, I would select the gold Buffalo coin. I think it is "cooler" than the standing liberty.

[PoindexterOglethorpe]

5. Personally, I own gold and silver jewelry

which I wear and enjoy.

[progree]

8. If a gold ETF is of interest to you, Bob Carlson of Retirement Watch recommends IAU

https://www.morningstar.com/etfs/arcx/iau/quote

I don't have any precious metals myself.

[Mosby]

10. People think the prices are going to continue to climb, especially silver.

You can buy it from a trading account, GLD and SLV are the tickers.

Eta buying coins will include numismatic values, I would only do that if you want to collect coins. If you want physical gold/silver buy junk coins or ingots.

[sweetapogee]

11. ok

we decided after much mental anguish to get started. Again, this is not an investment rather a place to store savings dollars. We purchased 1 pc one ounce American gold eagle and 2 pcs of generic 10 oz silver bars. Will see how this feels once we get it and have some time to get used to spending all that money on a few pcs of metal. We have been researching this for some time but still it feels odd to do this. Next step is to set some purchasing goals. Have a great day everyone!

[Happy Hoosier]

12. I'm less cautious...

Lots of recent evidence to sugest that having signficant holdings in bonds doesn't really insulate you in the long term... but that's up to you. I have 100% of my 401K in a total market index fund.

I keep cash outside my 401K in a HYSA, plus I have a brokerage account. Until retirement, I just keep 3 months expenses in cash, plus some accounts for anticipated future expenses.... house is gonna need a new roof and HVAC... car purchase/maintenance, vacation. At retirement, I'll shift cash on hand to 2 years living expenses.

I do own a small amount of PM, largely a remanant of my earlier (mistaken in my current view) belief that it would be useful in an economic disruption.
My current views are that no one will care about shiny metal in an economic disruption. They will care about things they can use, or physical cash... So I do keep some physical cash on hand to tide me over if, say, tornados wipe out electronic payment systems for a couple weeks.

I persoanlly don't see any advantage to PM's. In recent years their performance has not insulated from market declines. But again, if it helps you psychologically, go for it.

[sweetapogee]

13. thank you so much

I actually think our investment strategies are similar. I have 70% of my 401K going into FXAIX (fidelity S&P 500 index fund) 30% in a targeted managed fund which is currently about 40% bonds/60% stocks. Our brokerage account is 1/3 Schwab SCHD for long term, 1/3 SCHF for international exposure and 1/3 SWAGX bonds (re-thinking that one though). Partner has an annuity in the 403B and a total between the two of us of 1 years expenses in HYSA and about 2-3 months expenses in our working checking account. Looking to have when we retire 5 years expenses in a HYSA. We also have 1 ea Roths and a rollover IRA but only about 120K in those combined. I think as far as PMs go maybe 20 oz gold and 500 oz silver that is in the future just something to shoot for in the next 5 years and consider it kind like a hobby and to keep our savings interesting.

[Happy Hoosier]

14. Sounds like you are well situated!

Here's hoping Trump-Musk doesn't make Mad Max happen!

[moonshinegnomie]

15. i think 3-5% ie enugh for gold in a portfolio. 0% for silver

im retired an have a little over 3% gold in mine, 1/2 in th GLD etf and rest in actual bullion