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

So theres plenty of opinion out there on the question how much gold should be in a persons assets, but most advisors appear to recommend somewhere between 5% and 30%.

Kevin McElroy of Wyatt Investment Research, on the other hand, isnt inclined to put a hard and fast number on it.

He suggests theres a simple metric that will ensure you have the "bare minimum of gold or silver that you might need in a worst-case-scenario."

Heres Kevins 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."

This month the Perth Mint Website has seen a record for the value of gold and silver bullion sold online. Gold is now accounting for more than 75% of the money invested in precious metals via the site. In number this means currently for the site that, nine out of the top ten selling bullion products by revenue are gold! The record level of activity is testament to the robustness of the website and the website is hoping to serve even more online clients when issuing the 2012 Australian Lunar Dragon gold and silver bullion coins on 1 September.

About the Author:
The Perth Mint has been producing precious metals since 1899 and offers a variety of silver and gold bullion. You can read the above article by Kevin McElroys in full on the Wyatt Investment Research website.

Article Originally Published On: http://www.articlesnatch.com

Tags: perth mint

, bullion investment

, bullion

, gold coins

, silver

Related....

Videos...

Recent Business Articles

Why Approach Property Management Companies? By: Sarah | Jun 4th 2012 - Owning rental property is undoubtedly a great thing. It is an asset that is going to bring you a steady income. However, if the property is not managed well, you would only stand to lose more than you gain.

property management accounting

property management answering service

property management

hoa services

How Does A Property Management Company Help By: Tracy O'Toole | Jun 4th 2012 - You might think that using a property management company is a waste of time and money.

Property Management Company

Residential Block Management

Block Managing Agents

Property Managing Agents

Flat Management

Packaging Solutions Now At Your Doorstep By: Fretty Brown | Jun 4th 2012 - Crating is a process that is brought into use for the shipping of costly and important things from one place to another.

crating solutions

Crating companies Tampa

Top Most B.tech Colleges In Noida And India By: Corlin Stolz | Jun 4th 2012 - Electronic engineering is one of the most popular amongst all B.tech courses. It is offered in almost every college present in India. Nowadays it has been seen exceptional rise in number of these colleges in India. Due to this sudden increase places like Delhi NCR h ...

electronic engineering colleges

electronic & communication engineering noida

engineering college in India

Build An Effective Hr Business Plan By: Felicity Maris Modesto | Jun 4th 2012 - If you are at the helm of the HR division in your company, you may find your boss confronting you with this question one day, What business scheme do you have for your department? Such a question is to be expected, especially if you have been appointed to spea ...

hr services

Protect Your Electronics Against Moisture With Silica Gel Desiccant By: Paige Donahoe | Jun 4th 2012 - Moisture is the worst thing that can affect the performance of electronics. This problem can be solved by using silica gel desiccant.

Silica gel desiccant

silica gel

Become A Great Salesperson By: Jerry Brown | Jun 4th 2012 - It is really interesting but there are really two key parts to becoming a great Sydney sales person. As much as working on your sales skills and abilities to get more business through effective selling systems is important.

sales coaching training

personal development Sydney

Fairfield Property Management Company- Boon For Property Owners By: robert james | Jun 4th 2012 - A Fairfield property management company takes into account all the responsibilities of bringing the best help for property owners and tenants so that they hitch a feasible deal between them.

fairfield property management

property management fairfield

The Prepaid Card Revolution By: Mark Etinger | Jun 4th 2012 - Prepaid cards are a great option for many people.

no credit check credit card

Significance About Oil Storage Tanks By: AlvinTyler | Jun 4th 2012 - There are a lot of items to consider when looking for oil storage tanks. This article is about the various fuel storage systems you will get for your business. Read on to know more about it.

oil storage tanks

fuel storage

Comments

Still can't find what you are looking for? Search for it!

Site Navigation: