Hi,
You’re planning for retirement; you’ve got stocks, bonds, and maybe even real estate. Well, precious metals, whether gold, silver, or a dash of platinum, may well be the calm in all this storm. These investments aren’t tied to an earnings report, aren’t an IOU, and even remain strong when the market is unstable. They’re a valuable asset to hold and offer a number of other benefits as well
This is general education, not financial advice.
Why metals have a place at the table
- True diversification: The metals tend to behave differently from stocks or other currencies, so this reduces the volatility.
- Inflation shield: When money loses value, metals keep their worth over a complete cycle.
- No Counterparty Risk (When Physical):A coin or a bar is an asset you possess, as opposed to a promise.
Set a realistic goal, and stick to it
Metals should be a slice, not the whole pie. It should be a targeted, rotating portfolio, so pick a range and rebalance every year.
While metals are a
Conservative (5-10%)
80% gold, 20% silver – simple, consistent, and uneventful
Balanced (11-25%)
70% gold, 25% silver, 5% platinum – a little bit more upside.
High conviction (26-40%)
60% gold, 35% silver, 5% platinum/palladium – stronger hedge, more
What to actually buy (premiums matter)
Gold
- 1 oz Coins (such as Maple Leafs): Extremely liquid, with a slight premium.
- 1 oz/10 oz bars: lower rates, ideal for growing portfolio.
- Fractionals: flexible, but higher premiums.
Silver
- 1 oz Coins: e.g.,.Maples: easy to sell at any given time
- 10 oz, 100 oz, 1 Kg bars: bang for the buck.
- Monster Boxes (500 coins): Best price per coin if you’re serious.
Platinum may optionally
Coins/bars are 1 oz. A small allocation makes a big difference in a new cycle.
Simple rule: Target a liquidity/supply mix—clients want 60% coins, 40% bars.
Store it safely
- Home safe: Bolted down, dry, discreet, keep track of Inventory with serials and pictures, add insurance for larger portfolios.
- Bank box: Secure, relatively low-cost, but limited operating hours. Check what’s covered (it won’t be the stuff inside).
- Allocated vaulting: Storage as well as bar listings, audits, and insurance by a professional company, for a fee.
Keep those purchase receipts, photos, and itemized list all together. It will make your future self, and/or your executor, very happy.
Taxes
Canada: Whether to keep your metals either outside RRSP/TFSA or to keep everything nice and neat as part of your overall strategy.
Everywhere: monitor your cost base. A simple spreadsheet will suffice.
A stress-free approach to building your stack
- Specify a fixed amount every month, ranging between $300 to $1000 (varies per person)
- Alternating products: Month A, gold coin; Month B, silver bars.
- You should keep 10-20% of your metals budget as a small ‘buy the dip’ fund.
- Every season, check your drift. Fill what is pulling your target.
Rebalance with retirement goals in mind
- Annually: If metals are running hot, and if they’re going past their range, you’ll want to reduce and refill any light areas.
- Closer to retirement: A bias toward gold and very liquid assets (coins/bars – 1 oz).
- Sales in retirement: Sell the high premium assets last. Capitalize on strong markets to replenish a 12-month cash hoard.
A simple starter list
- Pure gold: 1 oz Gold Maple Leaf + 1 oz or 10 oz bars.
- Base silver: 1 oz silver Maple Leafs + 10 oz/100 oz bars.
- OPTIONAL KICKER: 1 oz platinum, up to 5% of metals sleeve.
Avoid these common pitfalls when investing
- Collectible FOMO: Fancy designs are fun, but don’t let premiums bite your return.
- Ignoring Spreads: Your return starts negative by the spread – keep it small.
- Lack of documentation: Document things you own, their locations, and how to sell them.
- All-in timing wagers: Start small. Consistency is key. The Role of AU Bullion
Actually, the Strong prices on primary coins & bars to maintain a low-cost base. Depth of inventory representing both cumulative and annual rebalancing requirements. Helpful guidance: We can create a monthly investment plan and a one-page rebalancing to-do list.
