Should You Allocate 10–20% to Gold? Diversification Insights

Many financial advisors recommend allocating a modest portion of your retirement portfolio—often between 5% and 20%—to precious metals. Gold can diversify your holdings because its price often moves independently of stocks and bonds. By adding a tangible asset that historically hedges inflation and currency devaluation, you reduce overall portfolio volatility without abandoning growth-oriented investments.

The right allocation depends on your risk tolerance, investment horizon, and existing exposure to other asset classes. During recessions and periods of high inflation, gold has preserved purchasing power while equities slumped. A 10‑20% allocation can help cushion market downturns and provide liquidity, while still leaving most of your portfolio in assets that may produce higher long-term returns.

Before deciding how much to dedicate to gold, consider the fees and storage costs associated with physical metals inside a Gold IRA. For more insights, read our pages on **Gold IRA Fees and Costs** and the **Benefits of a Gold IRA**. These resources explain why physical gold may be a smart addition to your retirement plan and how to structure your allocation for maximum diversification.