How much gold should you own? Here's what financial experts say

Gold is often viewed as a store of value and can help stabilize portfolios during times of inflation or market volatility. But how much should you actually own? And is it even necessary at all?

Experts tend to recommend investors hold between 0% and 15% of their portfolio in precious metals like gold, with 5% being a common starting point for moderate buyers.

That said, there's no one-size-fits-all approach to investing in gold. How much you should personally own depends on your investing timeline, risk tolerance and goals. Here's what you need to know before you decide.

Here's how much gold you should have in your portfolio

According to experts, a balanced portfolio usually allocates between 0% and 15% in precious metals, with most of this allocation being in gold.

"A common starting framework is 5% to 10% in precious metals," says William Connor, CFA, CFP and partner at SAX Wealth Advisors. This level can improve portfolio diversification without significant sacrifices to long-term returns.

Recommendations can also change alongside the larger macroeconomic environment. "Historically, the recommended standard portion allocated in precious metals was 2% to 5%. Following price surges and increasing economic uncertainties, this number has increased to 10% to 15%," says Leo Chen, professor at the University of South Florida's Muma College of Business.

Ultimately, how much gold you hold also depends on your individual goals, risk tolerance and investment timeline.

How to decide how much gold to own

Although there are general guidelines around how much gold to own, there's no one-size-fits-all approach. "The final percentage should be driven more by risk tolerance, inflation concerns and portfolio objectives than by age alone," says Connor.

To decide how much gold to own, focus on your goals, timeline and the overall market.

Start with your goals

When choosing a gold percentage, you must consider how gold fits into your broader portfolio strategy. Are you prioritizing growth, diversification or wealth preservation?

Gold primarily serves as a way to reduce volatility and hedge against inflation in your portfolio – not maximize returns. Because gold moves differently than stocks and holds up well during market stress, it's also a key portfolio diversifier.

That's why strictly growth-focused investors usually don't prioritize holding gold, while investors focused on stability and capital preservation often do.

Consider your timeline

Age and investment horizon also influence how your portfolio is allocated.

"Younger investors generally have a greater ability to withstand volatility and longer recovery periods. Therefore, they benefit more from equities rather than larger allocations for precious metals," says Chen.

On the other hand, if you're closer to retirement or have a shorter investment horizon, precious metals can offer a more reliable store of wealth. "At this stage, gold becomes more attractive because of its lower volatility, greater liquidity and less dependence on industrial demand," says Chen.

Factor in your risk tolerance and market concerns

Investors who are worried about high inflation, currency instability and geopolitical conflicts naturally gravitate toward gold, as it is a "safe haven" asset that has historically held value amid market volatility. "The metal has particularly performed well during economic drawdowns, exhibiting low or even negative correlation to equities," says Chen.

But while holding gold can help reduce portfolio risk, it can also mean missing out on higher returns elsewhere. "Gold and silver pay no dividend, earn no interest and generate no cash," says Chen.

Do you need gold at all?

Essentially, gold decreases volatility, but also reduces your long-term growth potential. For this reason, expert opinions are mixed on whether or not gold is an essential part of any portfolio.

In particular, experts tend to agree that younger investors are usually better off with minimal or no exposure to precious metals.

"The tradeoff between slightly dampened volatility and the lost long-term return is certainly not a prudent one, particularly for Gen Z/millennials with long investing time horizons," says Robert R. Johnson, PhD, CFA, CAIA, professor of finance at Creighton University's Heider College of Business.

Still, gold's stabilizing role can be especially useful for investors with shorter time horizons, where protecting against inflation and market volatility becomes more important.

Bottom line: Gold is a small part of a balanced portfolio

For most investors, gold represents a small, strategic portion of their portfolio. A common benchmark for gold allocation is between 5 and 10%.

Purchasing gold usually makes the most sense if you have a shorter investment period, such as if you're nearing retirement. In this case, you'll benefit from gold's diversification and protection against inflation.

On the other hand, if you plan to stay in the market for longer, it's easier to weather short-term market fluctuations and get higher returns on other investments.

FAQs: How much gold you should own

Is 5% gold enough in a portfolio?

Although it depends on your individual goals and timeline, 5% is a common allocation for gold in a portfolio. Investors who are nearing retirement or prioritizing portfolio stability may want to allocate more.

Can you own too much gold?

Experts typically recommend allocating only a small percentage of your investment portfolio to gold. That's because, in the long-run, you can earn higher returns on other investments, like stocks, compared to precious metals.

Does gold protect against inflation?

While it's not guaranteed, gold is often considered a protection against inflation. That's because gold tends to hold value over time, even when fiat currency loses purchasing power.

This article originally appeared on USA TODAY: How much gold should you own? Here's what financial experts say

Reporting by Faith Wakefield, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect

Copyright Reuters or USA Today Network via Reuters Connect

This story was originally published June 26, 2026 at 2:26 PM.