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2024 Precious Metals in a Rising Storm
July 2024 – Metals Market Expert, Jeffrey Christian from the CPM Group discusses how much gold and silver you should have in your portfolio based on long term data analysis. Is the 5-10% rule of thumb antiquated or the right position for you? With current and upcoming economic and political conditions on the horizon, is now a time to put more into precious metals? What is your core position? Is it enough?
Understanding the Value of Precious Metals
Jeff discusses the importance of including precious metals in one’s investment portfolio. According to CPM Group research, traditionally, investors were advised to allocate 5-10% of their wealth to gold and silver. However, updated data suggests that a more optimal range might be between 25-30%, especially given the current global landscape.
“Historically, the rubric has always been 5 to 10% of your portfolio or your wealth should be in gold and silver,” Christian explains. “But that data was based on research done in the early 1980s. We’ve updated that using more recent methodologies, and what we found was that the optimal amount might be much higher.”
Factors Influencing Investment Decisions
The appropriate allocation of precious metals varies based on individual circumstances, including wealth, age, income, and investment goals. The percentage of wealth in precious metals should be tailored to personal financial situations and the broader economic and political climate.
Personalized Investment Strategies
For investors, a flexible approach to precious metal investments is crucial. Maintain a core position and adjusting based on market conditions. Expanding holdings during market dips and trimming them during rallies can optimize returns.
