How much of my portfolio should be in precious metals?

Financial advisors often suggest allocating between 5% and 15% of your total investment portfolio to precious metals. This range typically provides sufficient diversification and a hedge against inflation and market volatility without overly impacting growth potential.

Are precious metals a good investment for retirement?

Yes, precious metals can be a valuable component of a retirement portfolio, primarily for diversification and as a hedge against inflation and economic uncertainty. Certain IRS-approved physical metals can even be held in a Self-Directed IRA, offering tax advantages.

What is the best precious metal to invest in?

Gold is generally considered the safest and most stable precious metal, acting as a primary store of value and safe haven. Silver offers higher volatility and potential upside due to its significant industrial demand, while platinum and palladium are highly dependent on the automotive industry. The "best" depends on your specific goals and risk tolerance.

How do I store physical gold or silver securely?

Secure storage options for physical precious metals include a high-quality home safe (for small amounts), a bank safety deposit box, or a specialized third-party precious metals depository. For significant holdings, a reputable, insured third-party vault is generally recommended.

What are the tax implications of selling precious metals?

Gains from selling physical precious metals (bullion, coins) or ETFs that hold physical metals are typically taxed as "collectibles." Long-term capital gains (held over one year) on collectibles are subject to a maximum tax rate of 28% (as of 2026), which is higher than standard long-term capital gains rates for stocks.

Can I invest in precious metals without buying physical bullion?

Yes, you can invest in precious metals without buying physical bullion through several avenues. These include Exchange-Traded Funds (ETFs) that track metal prices, stocks of precious metal mining companies, and precious metals mutual funds.

What is the difference between bullion and numismatic coins?

Bullion coins are valued primarily for their metal content and are bought for investment purposes (e.g., American Gold Eagle). Numismatic coins are rare or collectible coins valued for their historical significance, rarity, and aesthetic appeal, often trading at a significant premium above their metal content. For investment, focus on bullion.

Precious Metals Investing: Guide to Gold, Silver & More |…