Some perspective amongst bears

There is a level of frustration creeping in with some gold investors as the price seems bound about $20 either side of USD1300 for some weeks now.  Firstly we’d suggest an investment in gold should not be about ‘weeks’ or even months.  An investment in gold is a balancing of your portfolio, protecting your wealth against the various global economic issues we talk of daily.  That they exist is certain.  When they play out is unknown.  That is why you invest in a number of asset classes to balance your risks. But low prices can always represent good buying.  To give some perspective the graph below compares the year to date performance of the SP 500, the NDX, the Russell 2000, and Gold.  Those who have started their gold investment at the beginning of this year would be pretty happy, those that didn’t may have been able to ‘average down’.  The fundamentals have not changed.