Diversifying my PMs - why I finally pulled the trigger on silver for my Gold IRA.
- •Been a gold bug for a while, as many of you know from my previous posts.
- •Not that I’m questioning gold’s long-term value, but diversification always makes sense, even within asset classes.
- •I’m starting relatively small for me, around a $200k allocation, primarily in American Silver Eagles and some larger PAMP Suisse bars.
Been a gold bug for a while, as many of you know from my previous posts. My personal allocation of physical gold is significant, and I rolled a good chunk of an old 401k into a Gold IRA a few years back – roughly $1.2M of it is in various gold products. Given the current market volatility, especially with all the noise around inflation and geopolitical instability, I've been feeling increasingly uneasy about having all my precious metals eggs in the gold basket, so to speak. Not that I’m questioning gold’s long-term value, but diversification always makes sense, even within asset classes.
After a good amount of research and conversations with a few people I trust in the space (including my wealth manager in NYC who also holds a notable PM position), I decided to add silver to my Gold IRA. I’m starting relatively small for me, around a $200k allocation, primarily in American Silver Eagles and some larger PAMP Suisse bars. The entry point felt right given recent price action, and frankly, it just felt like the right move for broader portfolio resilience. The industrial demand argument for silver also holds a lot of weight for me – it just seems like it has more pathways to growth outside of pure monetary hedge.
My thinking is that with gold's somewhat detached behavior from industrial cycles and silver’s dual role (monetary and industrial), I'm effectively hedging against different economic scenarios. If we see a significant economic recovery, silver could potentially outperform. If things really go south, gold will likely be the primary safe haven, but silver should still hold its own as a store of value. Am I overthinking this, or does that reasoning resonate with anyone else here who's juggled substantial PM holdings?
What are your thoughts on allocating something like 80/20 gold/silver in an IRA? Or perhaps even a 70/30 split?
Curious to hear from others who have gone down this road, especially if you have an eight-figure portfolio and are thinking about these allocations at scale. It’s one thing to buy a few ounces here and there; it’s another when you’re talking about six or seven figures of metal.