I Tested Every Strategy for Knowing When to Stop Buying Precious Metals – Here’s the Smartest Approach

I Tried Every Strategy and Here’s What Works (And What Doesn’t)

After years of buying gold coins, rare numismatics, and other precious metals, I hit a wall. I kept asking myself: When is buying enough? This wasn’t just about math or market timing. It felt personal and psychological. So I tested every approach I could find—from strict portfolio rules to emotional impulse buys. Here’s what I learned.

The 4 Most Common Approaches (And Their Pitfalls)

1. The “Percentage of Net Worth” Strategy

Many investors stick to a fixed percentage, like 5–20% of their net worth, for precious metals. I tried this for a year.

• Pros: It keeps you disciplined and helps with long-term diversification.
• Cons: It ignores emotional burnout. I hit my 15% target but still felt uneasy about buying more.

2. The “Stack Indefinitely” Mindset

Some collectors say you should never stop buying. I gave this a serious try.

• Pros: It’s exciting and great for rare finds.
• Cons: It led to decision fatigue. I hesitated on a solid $390 1/10th oz AGE deal, even though it made sense.

3. The “Specific Collection Goal” Approach

Focusing on finishing a set, like a type collection, gave me clarity.

• Pros: It’s motivating and creates natural stopping points.
• Cons: High-end coins ($5,000+) slowed me down. Waiting for “the right coin” meant missing other opportunities.

4. The “Life Stage” Rule

I tested adjusting buys based on age and income, like buying more before retirement.

• Pros: It’s practical and matches your cash flow.
• Cons: Too rigid. Market dips, like in 2023, tempted me to break my own rules.

My Hybrid Solution: The 3-Bucket Framework

After tracking my results, I blended the best ideas into a flexible system:

1. Core Holdings (60%): Bullion and low-premium coins, capped at 10–15% of net worth.
2. Passion Buys (30%): Rare or unique coins, bought only if they spark joy—yes, like Marie Kondo!
3. Opportunistic Plays (10%): Reserved for deals, like $2.5 Indians at melt value.

Key Takeaways

• Decision fatigue is real. Automate rules, like “no buys over $X unless pre-approved.”
• Your “enough” point isn’t static. Re-evaluate every 6–12 months.
• Embrace hybrid strategies. Strict formulas fail when markets or moods change.

Final Verdict

For me, the breakthrough was separating investment buys from passion buys. Those $460 Indians? I passed—they didn’t spark joy. The AGEs? I bought them instantly as a hedge. Define your buckets, set guardrails, and remember: “enough” is a spectrum, not a number.

Related Resources

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