How should I size a silver position relative to the rest of my portfolio?

Last year I learned the hard way that silver moves on sentiment and short-term swings. I started with a tiny stake, about 2% of my portfolio, just to have some exposure to a metal that often acts like economic insurance when stocks wobble. The rest stayed in a mix of equities, some gold, and cash. When silver sprinted higher, I resisted the urge to pile in more and capped the position at 4% of the total. I also rebalanced every few months. If you’re risk-averse, keep it under 2-3% and only add if you’ve got room; if you’re comfortable with volatility, 5% max. The key is sizing to total risk, not chasing dollars.

Since I started paying attention to precious metals, I kept silver as a satellite slice rather than a core holding. My rule of thumb is to cap it at a few percent of the portfolio, about 2-5%, and only push toward the high end if I’m comfortable with a bigger drawdown and have a clear inflation or macro thesis. I started with around 2% allocated to silver, just to have an option when inflation worries were fresh but equities were strong. When silver ran up and drained the risk budget, I trimmed back to 2-3% to avoid turning it into a swing factor that could drag the portfolio on a bad day. If you’re more adventurous, 5% can work, but don’t let it become a big bet; set a max drawdown stop and rebalance regularly. I also consider correlation and volatility; I don’t want a big chunk if my portfolio is already volatile. Silver is best as a hedge/tilt, not a ballast, so I keep it small, diversified, and mentally separate from my core equity bets.