How to Build Your First Gold and Silver Portfolio
You have decided to start with investment gold but are not sure exactly where to begin, or whether to add investment silver as well? In this article we show a simple way to build your first balanced precious metals portfolio – from your first bar to a combination of gold and silver in various weights.
Step 1: A small gold bar as the foundation
The easiest start is a small gold bar, for example the 1g Argor-Heraeus bar. The low purchase price lets you begin without a large initial investment and gradually build the habit of buying regularly. A detailed overview of which weight suits your budget is in the article Which gold bar weight to choose.
Step 2: Bullion coins to diversify the form
While bars are usually the cheapest option per gram, bullion coins such as the Wiener Philharmoniker also offer aesthetic value, worldwide recognition and legal tender status. Combining bars and coins in your portfolio makes it more flexible when you sell in the future.
Step 3: Add investment silver
Investment silver, for example the 1 oz Nadir Metal silver bar, lets you enter precious metals at an even lower unit price and diversifies your portfolio with a second metal. Whether, and in what proportion, to add silver to gold is discussed in the article Gold or silver: what to invest in.
Keeping an eye on the gold-to-silver ratio
Experienced investors often track the gold-silver ratio – the relationship between the price of gold and the price of silver. It suggests whether silver is historically cheap or expensive relative to gold and can help you decide which metal to add next.
How much gold and silver to hold
There is no universal rule – it depends on the overall size of your wealth, your time horizon and your tolerance for price swings. The general advice is not to invest everything at once but to build your position gradually and regularly, as described in the article Buying gold regularly.
Frequently asked questions
Should I start with gold or silver?
Both have their place – gold is traditionally seen as a more stable store of value, while silver offers a lower entry price and higher volatility. Many investors combine the two metals.
Is it better to buy one large bar or several smaller ones?
Larger bars usually carry a lower premium per gram, while smaller weights are more flexible when building a portfolio step by step or selling part of it.
Do I need to manage the portfolio actively?
Physical investment gold and silver do not require active management like shares – they are a long-term reserve, not an actively traded instrument.
About the author
Adolf Baumann, analyst at Baumann Group a.s. (GOLDU), has been working with precious metals for over 30 years. He has seen euphoria, crashes and panic on the markets – and he still enjoys it. He explains in plain language what moves the price of gold and silver and how to handle them without unnecessary mistakes. His weakness? He refuses to wear a suit.
