Do I need to own physical gold?

Physical gold is mostly only for the ultra rich

I advocate keeping about 10% of one’s financial assets in gold and 90% in stocks (or similar risky assets). By regularly rebalancing back to 10/90 (annually or when the gold share has fallen quickly to about 5% or increased to 20%). Rebalancing with physical gold is expensive. And storing physical gold can be a hassle. It is not recommended that you keep physical gold at your home. Consequently, you shouldn’t own more physical gold than a couple of per cent of your total wealth, and that should be kept at a certified non-bank vault. 

 

You need at least 5m USD to hold physical gold

If you have at least $5m in financial assets, about $100k could be stored permanently in the form of gold coins, currently about 50 regular 1-ounce coins. That is your insurance that you always can fall back on no matter what else happens in the world. That gold should not be moved or traded in any way unless there is an emergency. Storing less gold than that is expensive, and holding more than a couple of per cent of your assets in permanent vault storage is ineffective.

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