Gold is down for the week bringing it closer to $1,600 again. What else is Gold to do? We have not seen the total collapse of the yellow metal just some erratic pricing based on Dollar strength, stock weakness and EU Debt debate between the IMF & EU Central banks. Still it remains above the $1,600, still it is doing what it was designed to do: financial insurance for your investment portfolio.
What do you think is paying for those losses in the market? GOLD! Gold has been behaving like a commodity again in that it has found support from the physical market, but is also behaving as a risky asset and taking its cue from the equity markets and the need for liquidity and cash for margins are weighing on gold, because it is one of the few assets you can take profit on, said Barclays Capital analyst Suki Cooper on CNBC. Profit? Yes there is still a ton of profit in gold & investors are using it to pay for poor investments in losing stocks.
The take home lesson is this: buy on the retractions. We are in a week of retractions use this opportunity to ad to your investment portfolio the insurance provided with a Tangible Asset Portfolio. Your personal TAP should conservatively be 10% to an aggressive 20% of your total net worth. Take the time to make sure you have the same financial insurance used by major Wall-Street investors, solid gold.