Last updated: October 2, 2026
There is no single gold percentage that fits every portfolio. Start with the purpose of the holding, the money you may need soon, your existing investments and the loss you could afford. Age alone does not settle the decision.
Content reviewed: October 2, 2026. Examples below are hypothetical, not allocation recommendations.
Write down the purpose first
Are you considering a personally owned bullion holding, a traded gold product or physical metals in an IRA? They differ in ownership, expenses and access. Describe what you expect the holding to do and what evidence would lead you to reconsider it.
The SEC investor guide to asset allocation explains that time horizon and risk tolerance shape the allocation decision. Its general framework is not an endorsement of a particular gold percentage.
Measure the exposure you already have
Choose the portfolio you are evaluating and use the same valuation date throughout. List direct gold holdings and relevant investments held through accounts or funds. Keep mining-company shares separate: they are businesses with company risks, not the same asset as physical gold.
Exposure percentage = current value of the gold holding ÷ total value of the defined portfolio × 100. Explain what is included in both figures. Jewelry or a collectible with a resale premium may need a realistic net sale valuation.
Use a loss scenario before choosing a number
The table isolates a hypothetical 30% fall in a gold holding while the rest of a $100,000 portfolio is unchanged. These round-number cases demonstrate exposure sensitivity. They are not recommended allocations or price forecasts.
| Gold holding | Share of portfolio | Loss on that holding | Effect on total portfolio |
|---|---|---|---|
| $5,000 | 5% | $1,500 | −1.5% |
| $10,000 | 10% | $3,000 | −3.0% |
| $20,000 | 20% | $6,000 | −6.0% |
Other assets can fall at the same time, and costs can increase losses. Repeat the exercise with scenarios suited to your situation and actual quoted charges. Gold is not a guaranteed offset to every equity, currency or inflation risk.
Check liquidity and costs
- What expenses or withdrawals must be funded without selling gold?
- What are today’s purchase and resale quotes for the exact holding?
- How much would storage, insurance, account and sale charges cost?
- How long would a sale and cash payment take?
- Would a sale or retirement-account withdrawal create tax consequences?
Physical metal does not itself pay interest or dividends. A plan for regular spending needs an identified source of cash, including during an unfavorable sale period.
Set a review rule
Record when you will reassess the holding, what change in your circumstances would trigger a review, and how you will evaluate transaction costs before rebalancing. A recent price rise does not by itself establish that you should increase the holding.
If retirement money is involved, check the IRS rules for IRA investments and custody. A dealer’s minimum purchase amount is a commercial term, not evidence of the amount that is suitable for you.
Decide with independent information
Use this worksheet to prepare a discussion with an appropriately qualified adviser who can consider your full finances. Verify credentials and understand compensation. A metals salesperson’s recommendation can have a commercial incentive.
Continue with gold ownership choices, the IRA cost worksheet or our company directory. Featured placements in that directory are commercial placements, not personalized suitability assessments.