WHAT OTHERS ARE
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 metric’ that
will ensure you have the “bare minimum of
gold or silver that you might need
in a worst-case-scenario.”
rule of thumb for people considering this issue:
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.
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.
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
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.
The Perth Mint