Measure how much of your chosen asset base is represented by gold. Separate physical bullion, financial gold exposure and an optional target allocation so you can see the current gap clearly.
Some people measure gold against all assets; others use only investable financial assets. Either can be valid for analysis, but changing the denominator can significantly change the resulting percentage.
When the purpose is total economic exposure, physical bullion can be combined with eligible financial gold exposure. Keep the definition consistent over time so changes in the percentage are meaningful.
Gold exposure divided by the chosen portfolio value.
Use whichever asset-base definition you have chosen consistently.
Yes, when measuring total gold exposure.
No.