How much gold should I own? (2024)

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MoneyWatch: Managing Your Money

How much gold should I own? (2)

Gold is ubiquitous. Found everywhere and seemingly used in everything from jewelry to electronics, chances are you own gold or are invested in it. Long known as a wise investment for many, gold has taken on new life in recent months and years. Due to its tendency to maintain its value and even rise in price over time, gold investing has increased in today's inflationary economic climate. Investing in gold hit an 11-year high in September. Even Costco is now selling gold bars to customers.

That all noted, it may not always be clear how much gold you should own, particularly when stacked up against alternative assets and investments. Fortunately, there are some guidelines both purchasers and investors can abide by to fully reap the benefits the precious yellow metal can provide.

Start by exploring your gold investing options here to learn more about this unique opportunity.

How much gold should I own?

To start, it's important to distinguish between owning gold and investing in gold. For the former, there are generally no specific limitations to how much you should own and is largely dependent on your personal preferences. How much you should invest in gold, however, is a different story.

A gold investment can be beneficial for many reasons. It can help hedge against the negative effects of inflation, diversify your portfolio and provide you with liquidity that other asset classes simply cannot. That said, it's generally not an income-producing asset in the same way that more volatile stocks and bonds can be. So you'll need to invest in the precious metal differently than you would with those assets.

Most experts recommend limiting your gold investment to 10% or less of your overall portfolio. The range between 1% and 10%, however, will often vary based on your age and overall investor profile.

To help better determine which exact percentage is right for you, it can help to look to the advice that applies to other investments. When it comes to stocks, for example, the general rule of thumb is to be invested in 100% minus your age. So, if you're 30 years old, your portfolio should be made up of 70% in stocks.

If you're 40, it should be 60% in stocks, and so on. Overall, as you age, your investments should evolve with your needs. Accordingly, younger gold investors may want to be closer to that 10% range while senior gold investors may want to be lower and more reliant upon income-producing investments. But, again, the exact figure varies based on your circumstances.

Not sure how much you should invest in gold? Start exploring your gold options here to learn more.

How to invest in gold now

There are multiple ways to invest in gold today, each of which has its own set of advantages. This includes investing in a gold IRA for retirement purposes or as part of gold exchange-traded funds (ETF). You can also invest in gold stocks or gold futures, but the latter may be risky for beginner gold investors.

Because gold doesn't come with the same familiarity that other asset classes do, it's helpful to research all types before getting started. And remember that a gold investment of any type is more of a portfolio protector than an automatic boost to your bottom line.

The bottom line

Owning gold can provide tangible, attractive benefits for owners. However, investing in it can positively affect your overall portfolio. Like any other investment, however, it's important to approach gold cautiously. This generally means limiting your investment to 10% or less of your overall portfolio. And it means researching all of your potential gold investing options to make sure that the one you ultimately choose is best equipped to provide the protections and returns you're aiming for.

Learn more about your gold investing options — and how much to invest —here now.

Matt Richardson

Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.

How much gold should I own? (2024)

FAQs

How much gold should I own? ›

Most experts recommend limiting your gold investment to 10% or less of your overall portfolio. The range between 1% and 10%, however, will often vary based on your age and overall investor profile.

How much gold do people own on average? ›

There are about 8 billion people. Therefore, the average person owns about 0.5 troy ounces (15.5 grams). This assumes that citizens of countries holding gold in reserve are considered as part owners of those gold reserves.

Is it better to own cash or gold? ›

Is it better to hold gold or cash? For short-term needs, cash is better due to its unmatched liquidity. For long-term buy-and-hold investments, gold is preferable to protect against inflation and provide portfolio diversification.

How much gold can you legally own in the US? ›

Today, there are no specific limits on how much gold a person can own in the U.S. Whether it's bullion, coins, or jewelry, you can buy, own, and possess as much gold as you like. The only restrictions may come from reporting requirements if you simultaneously buy or sell large amounts of gold.

What is the best quantity of gold to buy? ›

What weight of gold bar is best to buy?
  1. Small weights (1-10 grams): This gold bar size tends to be suitable for investors with limited funds or those who prefer a more flexible investment approach. ...
  2. Medium weights (10-100 grams): These gold bars offer a balance between affordability and potential for price appreciation.
Nov 17, 2023

How much gold will $10,000 buy? ›

Gold Coins: Assuming an average premium of 5% to 10% over the spot price, you can purchase around 4.5 to 4.7 troy ounces of gold coins with your $10,000. Gold Bars: With lower premiums, possibly around 2% to 5%, your $10,000 could buy you closer to 4.8 to 4.9 troy ounces of gold in bar form.

Is 1 oz of gold a good investment? ›

The bottom line

Investing in 1-ounce gold bars can be a prudent move for those who are looking to diversify their portfolios and safeguard against economic uncertainties. However, it's crucial to approach this investment with a clear understanding of the market, associated costs and the long-term commitment required.

What is the downside of buying gold? ›

Disadvantages. Gold tends to go in the opposite direction as interest rates. If interest rates go up, gold usually goes down. The U.S. Federal Reserve remains committed to keep interest rates elevated for a longer period of time.

What are the disadvantages of owning gold? ›

One of the significant concerns when holding physical gold is the cost of transporting, storing, and securing precious metals. Many people opt to store their physical gold in a safety deposit box in a banking facility. Renting this type of safety deposit box comes with ongoing fees but without the security to match.

Will gold ever lose its value? ›

Fluctuations in financial markets can also cause volatility in the price of gold. However, because so many investors purchase gold as a safe-haven asset, its value remains relatively constant. Long-term investments in the precious metal are unlikely to experience losses.

Does the IRS know when you buy gold? ›

While there is no limit on how much gold you can purchase without reporting it, any sales must be reported to the IRS. Additionally, you should be aware of other taxes and limits, such as the state sales tax and the $10,000 reporting requirement for cash transactions.

How does IRS know you sold gold? ›

When a consumer sells a reportable quantity of specific bullion or coins, precious metals dealers are required to file Form 1099-B with the IRS.

Why is it illegal to own gold bars? ›

The stated reason for the order was that hard times had caused "hoarding" of gold, stalling economic growth and worsening the depression as the US was then using the gold standard for its currency.

Are gold coins better than bars? ›

Investment Purpose: If your primary goal is to preserve wealth and invest in a tangible asset, gold bars may be the better choice due to their higher purity and lower premiums. On the other hand, if you have an interest in collecting and appreciate the artistic value of coins, gold coins might be more appealing.

Is it better to buy silver or gold now? ›

Silver could be a good option if you're considering investing a small amount of money, as it has more upside potential due to its industrial uses. On the other hand, if you plan to invest a larger sum, gold might be a better choice due to its scarcity and potential for higher gains.

How much gold can I buy for $100? ›

Convert US Dollar to GOLD 24 Carat/Oz
USDGOLD
100 USD0.041787 GOLD
500 USD0.208936 GOLD
1,000 USD0.417873 GOLD
10,000 USD4.18 GOLD
5 more rows

How much gold do most people have? ›

How much gold does the average U.S. household own? In my opinion, a good guess is between 1/3 and 1 troy ounces (10 to 31 grams) of pure gold, plus or minus. Almost all of this gold will be in the form of solid karat gold jewelry and gold coins, with a smattering from gold-filled jewelry and electronics scrap.

What percentage of people own gold? ›

Elites, including the World Gold Council and several analysts, suggest that between 2.5% and 25% of the total population own physical gold. The range is, however, too wide to make any comprehensive analysis. No one has ever known how much gold Americans own.

What is the 10 year average of gold? ›

As of December 2023, U.S. stocks had an average 10-year return rate of 12.75 percent, whereas gold had a return rate of 4.57 percent.

How much gold will $1,000 buy? ›

Convert US Dollar to Gold Gram
USDGOLD
50 USD0.693132 GOLD
100 USD1.39 GOLD
500 USD6.93 GOLD
1,000 USD13.86 GOLD
5 more rows

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