While many experts believe that investors should limit 10 to 15 percent of their investment portfolio to investments in gold, there are many factors to consider before making a decision. Most estimates suggest that investments in gold, such as through Gold backed IRA companies, should represent only 5 to 10% of your portfolio and no more. This will ensure that your portfolio has room for other investments, such as mutual funds, stocks, P2P lending, etc. The research showed that the “sweet spot for the percentage of gold in the portfolio is 20%”.In the long term, this provides the best balance between risk and reward.
Ashraf Rizvi, founder and CEO of Digital Swiss Gold and Gilded, says: “For those fortunate enough to manage a larger portfolio, investing in gold depends on investors' risk appetite and asset mix, not just purchasing power.