Start with the job you want gold to do
Gold earns no income. Its value in a portfolio comes from behaving differently from stocks and holding up in some crises. That means you're sizing insurance, not picking a growth investment. The question is how much protection you want and how much growth you're willing to give up for it.
What the numbers look like
| Total savings | 5% in metals | 10% in metals |
|---|---|---|
| $250,000 | $12,500 | $25,000 |
| $500,000 | $25,000 | $50,000 |
| $1,000,000 | $50,000 | $100,000 |
Compare those amounts with company minimums and fees. If your target is small, a gold fund in your existing IRA may be more cost-effective than a dedicated gold IRA.
Factors that move the number
- Time to retirement. Closer to retirement, a big stock drop is harder to wait out, which can argue for more protection.
- What you already own. Heavy in stocks? Gold adds more diversification. Already in bonds and cash? Less need.
- Income needs. If you'll draw on savings soon, you need assets that pay income or are easy to sell.
- Your temperament. If market swings keep you up at night, a larger stabilizer may help you stay invested.
Our recommended provider's free kit explains how to roll over a portion of a 401(k) or IRA into physical metals. Best fit if you have $50,000 or more to diversify.
Request the Free KitWhy not go all in?
A portfolio mostly in gold gives up decades of potential stock growth and dividend income, and it's exposed to gold's own long slumps. Be wary of anyone urging you to move all or most of your retirement into metals. See our red flags guide.
Keep it in balance
Once you've chosen a target, check it once a year. If gold has surged and now makes up far more than you intended, consider trimming. If it's fallen well below, consider topping up. Rebalancing keeps your protection at the level you chose.