Silver and gold percentages in an investment portfolio will differ according to several very important variables. Your financial situation is only one small part of this equation.
When we invest in any commodity, we are looking to buy in at the bottom, or the lowest price we can and sell at the top of the market. This is the age old dilemma. The hard part is knowing the top and more importantly, the bottom of the gold and silver market.
Trends can move the spot prices dramatically in a very short time. Watching the market closely is imperative if your going to try to make a profit in the precious metal market. How much you buy should be secondary to whether or not you buy any at all.
Any savvy investor will research historical data in great detail before deciding what to invest in. Look at market trends both past and present and think about what influences could affect your investment. Try to see the potholes before you step in them.
So How Much Should I Own?
Owning gold and silver in the range of 25% has been a traditional starting point for many investment advisors. A steadfast hedge against inflation, gold has seen popularity during times of stress for currencies. Investors flock to precious metals when times are tough.
Another common factor seems to be that when the stock market is down, the metals market seems to pick up. Supply and demand has less to do with this then a feeling of safety among traders who must put the money somewhere and are afraid of falling stock prices, as well as currency prices.
Age can be an important factor when deciding what percentage of your portfolio should be in these two precious metals. Younger investors can put up for the long term and older folks may be looking for a faster return. The precious metals market has always been a slow but steady sure footed investment with little risk. This however also presents an investment with a slow and small return.
At all time highs both of these metals are hard to get involved in with hopes of huge profits. There is always the risk that the bubble can break at any time. Governments could release large amounts of gold and long ago closed silver mines could be reopened. Many risk factors exist, however research and focus can greatly reduce this risk. Always study your intended investment before you buy.