Full Article: How much gold should I buy each year? Here’s what experts say.
Interest in gold has jumped substantially in recent years, as its recent price jumps can attest to — and it’s no wonder. With economic uncertainty, looming tariffs, shifting global politics, and concerns that inflation could rise, many consumers are looking for safe havens — investments that will protect their wealth despite ever-changing markets.
But just how much gold should you buy to achieve those goals of safety and protection? And should you invest all at once or in gradual amounts each year? While the exact amount depends on your unique goals and level of risk tolerance, there are some general rules you should follow.
Here are five key takeaways from the article “How much gold should I buy each year?”:
- Gold Allocation Depends on Risk Tolerance
Experts recommend allocating 5% to 20% of your total investment portfolio to gold, depending on your risk profile. If you’re more risk-averse or markets are especially volatile, a higher percentage (closer to 20%) may be appropriate. If your focus is on growth and you’re comfortable with risk, you might lean closer to 5%. - 5–10% is the Common Sweet Spot
Most financial advisors suggest keeping gold holdings between 5% and 10% of your total portfolio — not to be confused with buying 5–10% more gold each year. This guideline helps maintain a balanced, diversified portfolio without over-concentration in a non-yielding asset. - Avoid Over-Investing Due to Practical Drawbacks
Gold doesn’t produce income and can lead to storage, liquidity, and insurance challenges when holdings become too large. Stephan Shipe of Scholar Financial Advising warns that allocations above 10% can reduce diversification benefits and increase opportunity costs. - Buy Gradually, Not All at Once
Because gold prices can be volatile, experts advise buying in increments over time rather than making large one-time purchases. Gradual buying allows for more strategic entry points based on market trends, interest rates, and global events. - Review and Rebalance Annually
Reassessing your gold position once a year ensures it remains aligned with your financial goals and market conditions. Rebalancing helps maintain your target allocation if gold’s value rises or falls significantly.