You've heard you're supposed to hold 5% to 10% of your wealth in gold, right? 

But how are you to know if that's the best way to turn a profit? Peter Hug, global trading director at Kitco Metals Inc., said it's all about having a "balanced portfolio."

Speaking at TheStreet's investing boot camp this month, Hug explained that there's no black-and-white formula to tell investors how much gold they should own. Rather, it's a fluid investing process that requires adjustments every six months or so. 

In this video, watch Hug explain how investors can best "buy gold in a down draft and [sell] as gold strengthens."