Precious-Metals Allocation Calculator
Straight answer
To size a precious-metals position, multiply your total investable portfolio by a target percentage — most advisors suggest capping metals at about 5–10%. This tool turns that into a dollar figure and, if you want, splits it between gold and silver. It’s a framework, not advice: the right number depends on your goals, age, and why you’re holding metal at all.
Metals are usually held as insurance and diversification, not as an engine of growth — they pay no dividend or interest. That’s why a small, deliberate slice tends to beat an oversized one. Enter your portfolio value and a target to see the dollar amount.
A common starting point is 5–10% in metals, weighted toward gold. Higher concentrations raise volatility without adding income — size to your plan, not to a sales pitch.
Why 5–10% is the common ceiling
Metals diversify a portfolio because they often move differently from stocks and bonds. But they produce no cash flow, so an oversized position drags long-run returns. A modest slice captures most of the diversification benefit; doubling it mostly doubles the volatility. That's the logic behind the conventional 5–10% cap — read the reasoning in how much gold and silver you should own.
Splitting gold and silver
Many holders tilt toward gold for stability and add silver for upside, accepting its sharper swings. A 70/30 or 80/20 gold-to-silver split is common, but there's no rule. If you want to time the split by relative value, check the gold-silver ratio.
Rebalance, don't set and forget
If metals surge past your target, trimming back to plan locks in some gains and controls risk; if they lag, topping up keeps the allocation intact. Mind the tax treatment when you sell, since physical metal is taxed as a collectible.
What percentage of my portfolio should be in gold and silver?
Most financial advisors suggest a cap around 5–10%, held mainly for diversification. Some permabulls argue for more and some advisors for none — your figure depends on goals, age, and risk tolerance, not a one-size number.
Should I count a Gold IRA in this allocation?
Yes. Whether metal sits in an IRA or a home safe, it's part of your total metals exposure. Add it in so you don't unintentionally double up.
Does this include jewelry or collectible coins?
Treat investment-grade bullion as your allocation. Jewelry and numismatic coins carry large premiums and resell poorly, so most planners don't count them as portfolio metal.