Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

How Much Gold Should A Person Buy As A Percentage Of Their Wealth?

IMG Auteur
Published : August 11th, 2011
336 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

WHAT OTHERS ARE THINKING

There’s plenty of opinion out there on this question, but most advisors appear to recommend somewhere between 5% and 30%.

Kevin McElroy of Wyatt Investment Research, on the other hand, isn’t inclined to put a hard and fast number on it.

He suggests there’s a ‘simple metricthat will ensure you have the bare minimum of gold or silver that you might need in a worst-case-scenario.”

Here’s Kevin’s rule of thumb for people considering this issue:

“Look at your budget for your monthly living expenses. Stuff like food, water, transportation, clothes, heating oil, etc. Add it all up to find your average monthly cost of living. Multiply that number by six, and then buy a mix of gold and silver bullion equal to that six month estimated cost.

Why six?

Assume we enter into a real life, 'as seen on TV' currency crisis, with food riots and long lines at the gas station, wheelbarrows filled with cash to buy a loaf of bread, etc. In this circumstance I estimate that at the VERY least, you'll want to have enough gold and silver to cover six months' worth of your living expenses.


Six months would give you enough time to figure out the next step - whether that's moving in with relatives across the country, or finding a new home in a different area - even moving overseas, or starting a large garden or small business that would be in demand in the aftermath of a currency crisis.

Hopefully, six months of living expenses isn't more than 5% of your net worth - it's probably also an affordable amount to get started with.

Anything more than that six month supply is extra security for your bottom dollars.


I wouldn't advise putting more than 30% of your net worth in gold or silver. That's way too many of your eggs in one basket.”

Read Kevin McElroy’s post A Gold and Silver Buyer's Guide Part II in full here.

 

 

 



Stephen Ward

The Perth Mint Blog

  

 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Libertarian Paradox
24 Sepsam_site
As your article suggests, the state claims to insure an orderly environment so liberty can flourish. The reality is that the state promotes f...
The Truth About War and the State
24 Sepsam_site
Waugh Despite rigging as you say, Ron Paul couldn't even get eight states in 2012. He was too honest - with his "we can't afford the welfare a...
John Maynard Keynes, Immoralist
23 Sepsam_site
Intense Article. Behind the scenes, a Globalist cabal requires a champion like Keynes to legitimize the creation of fake money so the central...
What Gold and Silver Analysts Ov...
19 SepS W.
Well here it is 12 years on and never a truer article has been written. Gold is money and every thing else is "toilet paper" .. to paraphr...
Allegations of Fraud Surface Ove...
18 Sepkevthorne
Excellent article, Mish - it's about time this was highlighted - it is happening all the time here in the UK, with insurance companies, 'phone comp...
Ken Rogoff’s Government Debt Def...
18 SepDRGEORGE1
I thought James Grant's dismissal of this dangerous piece of propaganda was good but yours, Peter, was even better. Please, everyone, who reads and...
Allegations of Fraud Surface Ove...
17 SepGoldGrl0
Mish, you should stick to finance. Publishing unsupported attack rumors won't hurt H, but will hurt your reputation.
The Truth About War and the State
17 Sepkev43211
We will never get anywhere with this characterization of the state. The state is not some malevolent monster always seeking war. However, the sta...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS