Yes, gold prices are up, the markets are volatile and the outlook for the economy in the face of debts so big, calculators don't have enough digits to figure, is uncertain at best. This all begs the repeat of the million dollar question, how much gold in your portfolio is enough?Some say gold dealers, push people to own too much gold. Sometimes I just blink rapidly and think to myself, what did you say? Gold is up more than 350% in the last 10 years and the comment I hear most from people who did not buy is, I should have listened. And from those who did buy, almost to a person, they say, I wish I bought more. And perhaps more than ever individuals, central banks even countries are now turning to gold to hedge against uncertainties ahead.But please note, your decision now to buy gold cannot be based on past performance. I mean really! Any day now someone could pay off our national debt, hire 3 million workers, pay off all past due mortgages and give social security recipients a raise. Yes, the outlook now for recovery is uncertain, at best. That, however is no guarantee that gold will rise from today's levels. You must always decide how you hope for the best and plan for the worst as you manage your own savings and retirement accounts.That said, what is the right amount to have in your portfolio? It's been well documented in Lear Capital's weekly news releases and these articles, that brokerages, central banks, governments, right now, are recommending gold. You can find recommendations ranging from 5% of your investments to 20%, it really should vary depending on each person's situation and savings goals. Not long ago, Anne a faithful reader, asked the very question, how much gold is enough? Anne is a gold investor who probably wishes I would have told her to buy more as gold is up 10% in the 3 months since she posed the question. Sorry Anne! My bad! But my answer then is still my answer for anyone who asks today. And before I give you that answer, let me make it clear that I believe everyone should own some gold.Nobody has a crystal ball and certainly there is no exact formula for dividing your investments over the various classes. Everyone is different, every portfolio is different. Consider this: The family with 25 million of net worth can afford a greater at-risk portion of their portfolio than someone with a $1 million net worth. And the one who has a million of net worth has more risk tolerance than does the one who has $100,000 of net worth.Many variables go into a strategy. Certainly, no one wants to go all in with any investment if it puts your ability to survive at risk. Maslow, put food and shelter at the bottom of the pyramid, the top of our hierarchy of needs. If you lose that, your choice is slavery or death and those are lousy choices if you ask me. The secret is to be informed and have knowledge of the current economic environment. And then diversify! That is the key to success. The example given in Gold vs. Stocks illustrated the effectiveness a gold diversification strategy would have had over the last 10 years.Chances are your friendly gold coins dealer was in the business of promoting diversification 10 years ago and today those who did, are happy they did it. But let's look back 20 years and I submit your gold or precious metals dealer was making the same gold diversification recommendations. During the 90s gold was flat at best, and the stock market surged with the tech revolution. Do you think people who were diversified in gold then were complaining that they owned gold or were they happy because they owned tech stocks? I'm thinking those who complained about owning gold and put all their money in tech stocks were not so happy when the tech bubble burst. And the cycle starts all over again. In life we need balance. Investing is no different. If stocks crashed again, would you Survive? If Real Estate languishes for 10 years will you still have a place to live? And if gold crashes do you really care as it would likely mean everything else you have is doing fine. Remember! Your gold will never be worth zero - it will always be there waiting to play its historic role as hedge against uncertainty.