What percentage of a portfolio should be invested in precious metals? Why?

Discussion in 'Financial Planning' started by Chip G, Oct 13, 2003.

  1. Chip G

    Chip G Guest

    What percentage of a portfolio should be invested in precious metals? Why?
    Please provide a little background about yourself if you are not a regular
    poster so I can understand where you are coming from when you answer.

    Thanks in advance!
    Chip
     
    Chip G, Oct 13, 2003
    #1
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  2. Chip G

    Andy Guest

    "Chip G" <> wrote in message news:<7yCib.762658$uu5.132306@sccrnsc04>...
    > What percentage of a portfolio should be invested in precious metals? Why?
    > Please provide a little background about yourself if you are not a regular
    > poster so I can understand where you are coming from when you answer.
    >
    > Thanks in advance!
    > Chip


    I am no expert, but I would be wary of any formula that gives a
    percentage to be invested in precious metals. The precious metals
    market is speculative, i.e. it depends on income being generated by
    the investment but on market growth, and all speculation is just
    glorified gambling. For people with lots of money to play with there
    is nothing wrong with gambling, but I think the percentage you are
    going to gamble with depends on your personal situation (age, income,
    net assets) and feelings about risk. There is no one magic formula.

    Andy
     
    Andy, Oct 16, 2003
    #2
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  3. Chip G

    darkness Guest

    "Chip G" <> wrote in message news:<7yCib.762658$uu5.132306@sccrnsc04>...
    > What percentage of a portfolio should be invested in precious metals? Why?
    > Please provide a little background about yourself if you are not a regular
    > poster so I can understand where you are coming from when you answer.


    In precious metal equities: 5%. In precious metals: 0%.

    Right now probably a bit less than 5%.

    Why? 5% is probably the minimum to be meaningful in terms of the
    portfolio`performance. Historically precious metals stocks perform
    incredibly well for 1-2 years (as in they have trebled in the last 18
    months) and then do nothing for years.

    Precious metals themselves have very pedestrian long run returns


    >
    > Thanks in advance!
    > Chip
     
    darkness, Oct 16, 2003
    #3
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