How Much Gold Can You Own?

Are you wondering if there is a limit to the amount of gold bars you can acquire and own? The good news is that there is no legal restriction on how much gold you can buy. You can purchase as many gold ingots or coins as you can afford. Owning gold is an emotionally satisfying experience, but it also has its drawbacks if you own more than a small amount. One of the main issues is the need to secure and protect your physical gold.

Most advisors recommend that you don't allocate more than 10% of your portfolio to gold. When people enter the gold market for the first time, they often think that they need to declare their gold bars to the government. However, this is not necessary. A forward contract on gold gives you the right to purchase physical gold at a price specified today, at some point in the future.

This type of contract provides excellent security and offers simple policies, making it easy to manage your gold collection. It's important to remember that investing in individual gold companies carries risks similar to any other stock. Collector coins such as South African Krugerrands, Canadian maple leaves and American golden eagles are the most widely available type of gold coins. The largest funds in this sector include the VanEck Vectors Gold Miners (GDX) ETF, the VanEck Vectors Junior Gold Miners (GDXJ) ETF and the iShares MSCI Global Gold Miners (RING) ETF.

Gold bars come in sizes ranging from a few grams to 400 ounces, but are usually available in one- and 10-ounce bars. Some people view gold as a hedge against inflation, since the Federal Reserve's actions to stimulate the economy — such as interest rates close to zero — and government spending have caused inflation to rise rapidly. Gold does not lose its value over time and is easily traded, making it relatively easy for Americans to invest in this precious metal. Gold futures are a great way to speculate on the rise (or fall) in the price of gold, and you can even accept physical delivery of gold if you wish, although this is not what motivates speculators.

Toni Chinault
Toni Chinault

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