Where will gold go? Up? Down? Does it matter? That all depends on your view of the yellow-metal. From a sheer investor stand point gold made dramatic gains in the last decade, over 26% in the last year. As an investor you want your hard earned money to work for you. So as an investment, gold has shined in 24-karat brilliance of late.
Looking at gold as financial insurance it takes on a much different view. Acquisition is the driving force behind gold as a hedge or insurance. Through this lens, gold helps insure against losses in your stocks, bonds, & cash holdings. Gold always has value, unlike stocks of Enron, Indymac, & countless other failed institutions. In the last decade, those who have acquired benefited from its current bull run.
From the acquisition/financial insurance position gold’s increase or decrease in price is ultimately irrelevant. Just like you have insurance on your home, auto & life, you should maintain financial insurance on your investments with a tangible asset portfolio. For the investor, we think the pressures placed on gold will keep gold moving forward for the long term.
Jim Iuorio, TJM Institutional Services and Tom O’Brien, The Gold Report both brought the technical reasons for gold to go higher & lower respectively in the near term. Will gold go up to $1,570 or retract to $1,226? Who is correct? If we could predict that with any certainty, we would be at the beach drinking fruity beverages, living off our perfect stock picks from the last decade. To see more: CNBC: Is the Gold Rush Over?