How much gold should I buy each year? Here's what experts say.

Buying gold in the right amount each year is critical for investors looking to safeguard their portfolio. Getty Images/iStockphoto

Interest in gold has jumped substantially in recent years, as its recent price jumps can attest to — and it's no wonder. With economic uncertainty, looming tariffs, shifting global politics, and concerns that inflation could rise, many consumers are looking for safe havens — investments that will protect their wealth despite ever-changing markets.

But just how much gold should you buy to achieve those goals of safety and protection? And should you invest all at once or in gradual amounts each year? While the exact amount depends on your unique goals and level of risk tolerance, there are some general rules you should follow. Below, we'll examine what experts say about how much gold to invest in.

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How much gold should I buy each year?

Start with your risk appetite. Think about how risk-averse you are. If you're worried about big downturns in the market and want to be extra cautious, buying more gold may be the way to go. If you're willing to take on more risk in the rest of your portfolio, you can get by with less.

"Hold somewhere between 5%, if you are more interested in growth, and up to about 20%, if you are more risk-averse or the markets are more volatile," says Steve Wlibourn, a financial advisor at True North Advisors.

Many experts say the sweet spot for gold is somewhere between 5 and 10% of your total portfolio. This is what it should generally be limited to overall, opposed to buying an additional 5% to 10% each year.

"Ask yourself this question before investing: Would you want to invest more than 5% of your overall asset allocation into gold if the price were not moving higher the way it has over the recent months?," asks Steven Conners, founder and president of Conners Wealth Management. "If you still would want to add it to your portfolio, perhaps you can have a higher allocation."

Just be careful about over-investing in the commodity, as it can be hard to store, come with taxes and fees (you might need insurance), and cause other issues.

"Allocations materially above 10% start to erode diversification benefits since gold produces no cash flow, so a heavy weight can stunt long-term growth and raise opportunity costs," says Stephan Shipe, a flat-fee financial and investment advisor at Scholar Financial Advising. "Large positions can also create liquidity and storage and insurance headaches."

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Watch the market

Experts say it's important to buy your goal gradually — over the course of a year or several years. For one, Shipe says, "Gold's price can be volatile, so overbuying at one time creates risk that you buy at a high point."

Buying gradually also allows you to watch market conditions and time your purchases more carefully.

"Watching trends over longer periods of time will help you understand the factors that contribute to the rise and fall of the gold price," Wilbourn says. Items like interest rates and volatility in the markets in response to global events are usually indicators to buy. "When equities are running, gold will have a tendency to fall in price," Wilbourn says.

You can also watch inflation and keep an eye out for a weakening dollar. These can both be signs you may want to invest in more gold. 

"Increase buys when real rates are negative, the dollar weakens, or expected inflation or geopolitical stress rises," Shipe says. "Trim when those pressures ease."

Check your portfolio annually

Market conditions change often, and so does the value of your portfolio and wealth. As such, it's important to check in on your gold allocations once a year at minimum, experts say. 

"Rebalancing and evaluating your asset mix at least annually is recommended," Wilbourn says. "And purchasing gold on a regular basis should be a plan to keep your diversification in check with your time horizon and goals."

According to Shipe, buying gold at any point should be thought of as a "rebalancing exercise."

"Buy enough ounces to lift gold back to your chosen percentage whenever market moves drag it below the band," he says. "This keeps the position size aligned with your overall risk profile and liquidity needs."

Aly J Yale

Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more.