What is the optimal amount of gold for a portfolio?

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Reisebank AG’s study explains the importance of gold allocation in a portfolio

It’s a recurring phenomenon: In economically challenging times, whenever there’s a crisis brewing or a geopolitical incident occurs, people increasingly turn to gold. This phenomenon has been observable throughout history and continues on in today’s digital age. It’s a remarkable fact, but gold generates neither interest nor a regular income. Instead, its ownership incurs storage costs. And yet this precious metal continues to experience substantial increases in value year upon year. Beyond its intrinsic value, what is it about physical gold that makes it so unique, gives people a sense of security and attracts people like a magnet? A team of experts from Reisebank AG explores these questions in a comprehensive study that seeks to determine the optimal gold allocation for an investment portfolio.

Disclaimer

This article primarily aims to inform you about the findings of the Reisebank AG study. We believe this information can be helpful if you are planning to invest in gold or expand your investment portfolio. However, it does not constitute investment advice, nor can it replace such advice. Please consult a trusted financial advisor for targeted, personalised advice about your own financial planning.

Summary of the facts in this article

The survey for the study "Gold Investments 2024", conducted by the CFIN Research Center, formed the basis of a subsequent meta-study by Germany’s Reisebank AG.
The goal was to determine the significance of physical gold in combination with other investment products. Depending on individual factors, the study suggests a gold allocation of between 5 to 16% in any investment portfolio.
The Reisebank meta-study "Gold in the Portfolio Context 2025" focused on four key areas: portfolio optimisation, the tax advantages of physical gold, inflation and crisis protection, and the emotional aspects of gold investment.
The analysis was conducted by financial experts, who were also the authors of this meta-study.
The findings of the study can help investors make strategic decisions about the composition of their investments and determine the appropriate gold allocation for their own portfolios.
At the same time, the analysis provides investment advisors and precious metal dealers with reasoned arguments to inform their own client consultations. In particular, the thesis regarding the emotional appeal of physical gold significantly broadens broadens the target group of precious metal investors.

Overview of the Meta-Study “Gold in a Portfolio Context”

In 2024, Reisebank AG, one of the leading institutional precious metals dealers in Germany, conducted a representative study entitled “Gold Investments 2024” – with the technical analysis itself carried out by CFIN-Research, the Center for Financial Services at Berlin’s Steinbeis University. This was followed in 2025 by the publication of the meta-study “Gold in a Portfolio Context”.

For the study itself, 2,000 German citizens over the age of 18 were surveyed via digital channels. The inquiry aimed to investigate the ownership and origin of gold holdings, as well as the motives for acquiring gold. In addition, the research also assessed and noted the preferred form of acquisition (gold bars, gold coins, gold securities, divisible bars, or gold savings plans). Prevailing attitudes toward precious metals were also probed. The study’s authors included Dr. Jens Kleine, Professor of Bank Management and Finance at the University of Munich, and Dr. Tilmann Gerhards, Board Member of Reisebank AG, Frankfurt am Main.

Focus of the Reisebank AG Study

The meta-study, conducted in 2025, re-evaluates the survey results. To this end, the authors subjected the analysis to critical scrutiny, focusing on four broad research hypotheses. The goal was to determine the relevance of gold in portfolios. The study’s first hypothesis addresses the optimal allocation of gold within the total capital investments of private individuals in Germany. The second category highlights the tax advantages of physical gold, which, of course, do not necessarily apply in all other countries. The third aspect focuses on gold’s role as an asset for protection against crises and inflation.

The fourth and final thesis explores the non-monetary appeal of gold as an emotional asset. This perspective is particularly relevant for investors who have a strong emotional connection to gold products and whose purchasing decisions are based more on feelings than on other rational considerations. Indeed, according to the study, this emotional aspect plays a crucial role, because it significantly broadens the target group of precious metal investors. Both gold buyers and gold dealers can benefit from these findings.

You can learn more about the individual theses of the meta-study, their potential significance, and the rationale behind the results in the following sections.

Hypothesis1: Portfolio Optimisation

Today, investors have various options for investing in gold. In addition to physical precious metals such as gold bars or gold coins, other products are available that allow for indirect modes of investment. These include gold mining stocks, gold futures contracts, and gold savings plans. According to the study “Gold Investments 2024,” physical gold as a store of value accounts for only about 3% of total investment assets—”too low from a risk-return perspective,” as the authors noted.

The optimal gold allocation in a portfolio is a topic of ongoing discussion among experts and analysts. Here, it is striking to observe that concrete figures are rarely provided. They tend to remain variable and depend on various parameters, such as the investment horizon or individual investor requirements. Nevertheless, the effectiveness of gold as a portfolio addition is almost always viewed positively. As explained, the advantage is that gold exhibits a low correlation with other asset classes such as stocks and bonds. This, according to the experts, makes the precious metal a suitable diversification tool.

In their analysis, the authors draw on the widely used Markowitz portfolio optimisation method. This systematic and analytical approach aims to combine different asset classes in order to maximise returns and minimise risk. This approach allows fluctuations in one investment to be offset by stable returns among other assets. Investors can select a portfolio that matches their personal risk preferences. This could, for example, consist of four different asset classes: stocks, bonds, and real estate, as well as physical gold for its asset value. Compared to other asset classes, the precious metal continuously exhibits the lowest correlation values. This means that, depending on the market environment, gold exhibits independent performance and behaves independently, or in certain conditions even assumes an inverse proportionality.

Depending on the risk tolerance associated with other assets, the gold allocation in a portfolio can thus be increased, for example, from 6.7% to 10.2% to compensate. Depending on the chosen method of calculation, this results in a gold allocation of somewhere between 5 and 16%. The specific amount is based on individual risk tolerance, the chosen investment spectrum, and the desired investment horizon.

Hypothesis2: Taxes on Physical Gold

Modern financial products that merely replicate gold are now subject to taxation almost everywhere. Depending on the investment type, the tax treatment of gold investments can vary considerably. This study thesis focuses on the tax aspects in Germany, where profits from the sale of physical gold remain completely tax-free after one year. In contrast, ETCs or gold funds, for example, are subject to capital gains tax at a flat rate of 25%, irrespective of the holding period. As the authors explain: “For long-term investors, physical gold can therefore represent a significant tax advantage”. But can this same tax advantage be applicable worldwide?

While capital gains on gold, foreign exchange, and stocks are tax-free in Switzerland – though total assets (including precious metals) may be subject to a wealth tax – the situation differs in other countries.

Around the globe, the purchase and sale of bullion gold – gold bars and gold coins acquired for investment purposes – is predominantly exempt from value-added tax (VAT). However, the situation changes when gold products are sold. Different taxes are levied depending on the country, and these apply to private individuals with permanent residence. Gold ownership can also be subject to taxation. Below is an overview of the tax regulations applying in some of the countries of major interest to investors.

Switzerland: When Swiss citizens sell their gold, the sale remains exempt from capital gains tax (except for commercial sellers). However, gold ownership in Switzerland is still considered part of one’s taxable assets. Depending on the value of these assets, a wealth tax is levied. Though allowances are taken into account, these are also calculated differently from canton to canton. The basis for this calculation is the precious metal value at the end of the calendar year for the previous tax year. Learn more about taxes on gold in Switzerland.
Austria: The sale of physical gold remains exempt from profit tax in Austria after a holding period of twelve months. For sales within one year, the regulations for private capital gains transactions apply, and an individual capital gains tax is levied. Investors are granted a tax-free allowance of €1,000 per year.
Italy: If you live in Italy, a capital gains tax of 12.5% is levied on the profits from the sale of bullion gold.
France: Two different regulations may apply when selling gold in France. Either a so-called precious metals tax (TMP) is levied at a rate of 11.5% of the sale price. This measure applies if no purchase receipts are available. Alternatively, a capital gains tax (TPV) of 36.2% is levied on the actual profit from the transaction. This rate decreases with the holding period and is the option used when purchase receipts are available.
Spain: Whenever gold is sold in Spain, the transaction is subject to Spanish capital gains tax. This is levied on the difference between the purchase and sale price and ranges between 19 and 23% according to the profit gained.
Great Britain: Capital gains from the sale of gold are subject to capital gains tax in Great Britain. Gold coins which are legal tender in the country and produced by the Royal Mint, such as British Sovereigns or Britannia coins, remain exempt.
USA: US citizens who sell their gold must generally pay taxes on the profit. The amount of capital gains tax depends on the holding period. Sales of less than one year are considered short-term capital gains and are taxed at the individual's income tax rate. Gold held for more than one year is subject to long-term capital gains with lower tax rates.

NB

All tax regulations can change at short notice. So please consult a tax professional in your country for the most up-to-date information.

Hypothesis 3: Gold as a hedge against inflation and crises

The third hypothesis of the Reisebank study examines physical gold as a hedge against economic uncertainty. It posits that currencies can lose value through monetary policy measures, while gold, as an asset, remains independent of any respective central bank policies. The historical performance of this precious metal shows that it plays a stabilising role in periods of high inflation and price fluctuations in financial markets. Conversely, gold’s performance can vary during periods of economic stability. Thus, experts believe it should not be used as the sole hedge against inflation and crises, but rather deployed in combination with other assets.

Nevertheless, gold as an asset possesses several advantages that other asset classes cannot offer. These benefits primarily stem from gold’s fundamental properties: it cannot be arbitrarily increased in quantity, and its supply in the Earth’s crust is finite. Furthermore, its procurement is complex and costly. These factors create a natural price floor. According to the study, gold also benefits from broad global demand, 51% of which, according to regular surveys by the World Gold Council (WGC), is generated by the jewellery industry. Investment purchases account for 26%, while central bank purchases account for another 13%, with a further 8% used in technological and healthcare applications. The authors argue: “This very versatility is a key factor in gold’s value retention and explains why it is considered a safe haven in times of crisis, beyond its purely monetary functions.”

Thesis 4: Gold’s emotional and non-monetary aspects

The study also reveals that gold is particularly valued as a safe haven by older generations, while younger investors tend to favour digital alternatives like Bitcoin. However, when asked, the digital generation is now also showing an increasing interest and willingness to purchase gold for the first time. This fact alone suggests that gold is not just a purely functional or financial asset class, but also one with a strong emotional significance.

Gold holds great symbolic meaning in many cultures and is often seen as a status symbol. In jewellery form, this precious metal is not only an asset but also an expression of tradition, prestige, and social belonging. Gold jewellery in particular has been an integral part of family heritage for millennia, especially in Asia. Unlike abstract financial investments, physical gold conveys a tangible sense of ownership. According to the authors, studies show that people generally attribute a higher value to physical objects than to digital or hypothetical assets.

Indeed, owning physical gold can provide a sense of security and reduce the fear of loss, especially during times of crisis or economic strain. Psychological theories also suggest that people generally feel losses more intensely than they do equivalent gains. In this context, physical gold can act as a safety net and thus reduce the perception of risk. While bonds or stocks are generally viewed as rational, purely financial investments, gold products also carry an emotional component. The authors conclude: “Non-monetary aspects and emotional appeal are particularly relevant with physical gold.”

Conclusion: All study findings support the case for gold

Each of the four hypotheses presented here provide a reason why investing in gold can be worthwhile. The full set of hypotheses from the Reisebank AG meta-study “Gold in a Portfolio Context” creates a concept for individualised wealth management that can take into account the needs and goals of all investors. In particular, the emotional aspect of physical gold suggests a broader framework for investment. It considers financial factors alongside emotional and practical perspectives. This allows not only rational investment decisions, but also decisions which align with personal interests.