Precious metals
Metals in your portfolio
Metals and bitcoin are often framed as rivals, but in a portfolio they complement each other. The question is not which hard asset wins, but in what proportion you hold them and how you police that mix.
Roles per asset
Gold is the stabiliser, silver the cyclical amplifier, copper an electrification growth play and palladium a tactical bet on the car industry. Bitcoin adds an asymmetric profile with the hardest supply rule of all — which is why it deserves its own sleeve rather than replacing metals.
Correlation is not constant
Gold's correlation with equities hovers near zero over long periods but spikes in acute liquidity crises, when investors sell whatever is liquid. Bitcoin has tracked tech equities and global liquidity for years, so short-term diversification benefits are often overstated. Copper and silver fall with equities in a recession.
Rebalance with rules
Set target weights and bands (for example plus or minus 20 per cent relative), or rebalance on a calendar once or twice a year to limit costs and tax friction. Moving gains from a surging bitcoin position into gold is exactly the mechanism that tames both.
Costs decide the outcome
Returns on hard assets leak through premiums, spreads, storage, FX and roll costs. As a rule of thumb keep the total annual cost of your metals and crypto sleeve under one per cent.
Recommended by our newsroom
External parties. Block #9 does not hold or manage your assets at these providers. Not investment advice.
Frequently asked questions
Can bitcoin replace gold?
For most investors no; the volatility profiles differ too much, so they complement each other.
How often should I rebalance?
Once or twice a year, or when a position breaches its band.
Are miners a substitute for metal?
No. They are companies with operational and political risk; they give leverage, not pure exposure.
What share of wealth can go into hard assets?
Commonly 10 to 25 per cent for metals and crypto combined, depending on horizon and risk tolerance.
Read next
Investing in gold
How the gold market works: central banks, real rates, London and Comex, physical versus ETC, costs, tax and gold's role alongside bitcoin.
Investing in silver
Silver is half precious metal, half industrial input. The gold/silver ratio, solar demand, VAT, volatility and how to buy it.
Investing in copper
Why copper is called Dr. Copper, how data centres and grid upgrades drive demand, where supply stalls and how to invest.