Gold shines, and so does silver. But when do precious metals really make sense in your wealth, and when are they just a good feeling? A quick perspective, entirely without the hype.
The short answer. Gold and silver are an allocation, not a whole plan: a common guide is around 5 to 10 percent of your wealth. What makes sense is physical metal, as a savings plan from as little as 25 euros a month or as a one-off purchase. The honest expectation: an anchor of stability without interest, not a path to quick riches.
In uncertain times, many people think of gold first. Rising prices, headlines about inflation, the feeling that money in the account slowly loses purchasing power. So the question I often hear in Lüdenscheid is simple: should I go into gold or silver, and if so, how much?
My answer rarely begins with the metal itself, but with your overall situation. Even so, it's worth sorting the topic out calmly for once.
What a tangible asset actually is
A tangible asset is a real, physical counter-value you can touch. A property counts, a piece of land, and also physical gold or silver. That's the big difference from a balance in your account. There, you have a number whose purchasing power inflation eats away over the years. A gold bar stays a gold bar, regardless of what the printing press does.
Gold and silver have been used as stores of value for thousands of years. That long history is part of their appeal.
What role gold and silver play in your wealth
An honest expectation matters here. Precious metals are not a way to get rich quick. Their job is a different one. They are a stability building block and an allocation that often behaves differently from the rest of your wealth. When other building blocks falter, gold can act as a steadying force. That's not a guarantee, but a pattern many appreciate.
Just as honestly, this belongs to the picture: gold and silver pay no interest and distribute nothing. Their value comes solely from the price someone is willing to pay. And that price fluctuates.
Gold or silver?
The two metals have different characters. Gold is considered the calmer of the two, often a kind of insurance within your wealth. Silver is consumed more heavily in industry, for instance in technology and solar installations. That makes for more movement in the price, both up and down.
On purchase there's also a concrete tax difference: investment gold is exempt from VAT under § 25c UStG, whereas on silver 19 percent applies in principle. Which mix fits you is best clarified together on your specific case.
Physical, not just on paper
One point matters especially to me. This is about real metal, not a purely paper value. Through my product partner Geiger Edelmetalle, you can acquire physical gold and silver and have it stored securely. You then own real metal and not a mere promise on a certificate. How the purchase and storage work in practice is something I show you on the Buy gold and silver page.
Savings plan or one-off purchase
There are two ways to build up precious metals. With a savings plan, you regularly invest a fixed amount, from as little as 25 euros a month. You buy sometimes more expensively, sometimes more cheaply, and over time you get an average price. That takes the pressure out of the question of the perfect moment. How a monthly amount adds up over the years is shown by the precious metals savings plan calculator.
A one-off purchase fits if you want to invest a larger amount in a targeted way. Both routes can also be combined.
How much makes sense?
You don't have to choose between everything and nothing. Precious metals are an allocation, not a whole plan. A common guide is around 5 to 10 percent of your total wealth, depending on your situation a little more or less. How large your share should be, I answer with three questions I ask in every consultation:
- What do you want to achieve? Is it about long-term building or about an anchor of stability?
- What time horizon do you have? Do you need the money in three years or only in fifteen?
- What must not go wrong under any circumstances? How much fluctuation can you calmly withstand?
From your answers, a sensible share emerges, usually as one building block alongside fund savings plans and your provision. There's no need to rush anything.
The honest perspective
Gold and silver don't run on autopilot. The price can fall over longer periods too, and you receive no interest. Anyone who firmly needs their money in one or two years is ill-advised with precious metals. As a long-term allocation and as a tangible asset alongside other building blocks, however, they can sensibly complement your wealth mix.
Your next step
My recommendation would be not to decide this from the gut. Let's look together at whether and to what extent gold or silver fits your goals, and how it fits cleanly into your plan. The initial consultation is free of charge and without obligation, in my office in Lüdenscheid or conveniently via video.
Frequently asked questions about gold and silver
How much gold makes sense in your wealth?
A common guide is around 5 to 10 percent of your total wealth as an allocation. The right share depends on your goals, time horizon and your tolerance for fluctuation. Precious metals complement fund savings plans and provision, they don't replace them.
Does a gold savings plan make sense?
For many, yes, because with fixed monthly amounts, from as little as 25 euros, you achieve an average price and don't have to bet on the perfect moment. A one-off purchase fits if you want to invest a larger amount in a targeted way. The two can be combined.
Why is silver subject to VAT and gold isn't?
Investment gold is expressly exempt from VAT under § 25c UStG. Silver, by contrast, counts for tax purposes as an ordinary commodity, so in principle 19 percent applies on purchase. That belongs in the calculation when you mix gold and silver.
Related reading:
- Buy gold and silver: savings plan and one-off purchase via Geiger
- Money in your account loses value: what inflation does to your savings
- Wealth building with a plan
Eduard Strekert is a financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent. This article is general information and does not replace personal advice. It does not constitute investment or tax advice.