Gold vs. Silver allocation - thinking of shifting some things around

Steven Mitchell

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Gold vs. Silver allocation - thinking of shifting some things around

steven_mitchell🏆Advanced (250-500k)

about 2 months ago

Key Takeaways

•Curious if anyone else has wrestled with their gold vs.
•silver allocation in their precious metals IRA?
•Right now, my split is roughly 70/30 gold to silver.

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Curious if anyone else has wrestled with their gold vs. silver allocation in their precious metals IRA? Right now, my split is roughly 70/30 gold to silver. I started building this out about 5 years ago when I first got serious about diversifying away from just stocks and bonds. As someone in manufacturing here in Cleveland, hard assets just make a ton of sense to me, and the idea of having a chunk of my retirement not dependent on some paper promise is huge. My total PM portfolio is sitting around $380k at the moment.

Lately, though, I've been doing a lot more reading on silver. The industrial demand angle is really appealing, especially with all the talk about EV growth, solar advancements, and tech just needing more and more of it. Gold's always been my anchor, the ultimate hedge, and I don't see that changing for the core of my holdings. But it almost feels like silver has more immediate growth potential in the short to medium term, even with its volatility. I'm wondering if a 60/40 or even 55/45 split might make more sense, pulling some capital from gold and re-allocating it to silver.

My main hesitation is obviously silver's price swings. It can feel like watching a rollercoaster sometimes, and while I have a pretty high tolerance for risk within my overall portfolio, I also like the stability gold brings. I know historically the gold/silver ratio has been much tighter than it is now, which also makes me think silver is undervalued. Is anyone else looking at this? What's your current allocation, and what's driving your decisions?

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7 comments

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Best Answer▲ 18 upvotes

david_brown💎Premium (500k-1m)

My advisor told me 10-15% in gold is the sweet spot but I went heavier. We'll see how it plays out.

Comments (7)

ruth_perez📊Growing (50-100k)•about 2 months ago

Hey, totally get where you're coming from. I've been doing the same mental gymnastics with my own portfolio lately. One thing I found super helpful was looking at the historical gold/silver ratio rather than just the current prices. It can give you a better sense of which one might be undervalued relative to the other.

There are some good charts out there that track it going back decades. Just search "gold silver ratio historical chart" – it helped me decide on my last rebalance!

christopher_young🌟Ultra (5m+)Real Investor✓ Verified•about 2 months ago

Interesting split! I'm curious, what made you land on that 70/30 gold to silver ratio initially, especially given your background in manufacturing? Was it specific market trends at the time or more about the long-term stability you were looking for?

robert_thompson💰Established (100-250k)Real Investor✓ Verified•about 2 months ago

I hear you on the gold vs. silver dilemma. While 70/30 gold is a solid, conservative play, have you considered the *potential* upside of silver? It's often more volatile, sure, but with that volatility comes significant swings that gold sometimes misses. Especially if you're thinking long-term, silver might offer a bigger pop if industrial demand or inflation really kick in. Just something to chew on beyond the typical "gold is stability" mantra.