Buying Gold, with price over 1,600 you are desperate for a store of wealth outside the system or you have faith in things getting worse before they get better.
Either of these views is understandable, when you ask "how did we get in this position" and have the things that need to change, changed?
I normally only invest, (punt) where I see significant up-side with some sort of fall back if things do not pan out.
I am not wealthy enough to own lumps of metal as an insurance policy that may or may not pan out.
I do think it is not unreasonable for Individuals and funds to take a 5% position in Gold Producers. I never play Blue Chips ( I see these co. can drop 30% but I rarely see them go up 30% in the same time period). So last week I added SLR, NST and a punt on MRP to my positions
Now trade is not done until you exit, however, in the last week, NST and SLR are up over 11%. I may put an 8% stop loss on, by the time I make up my mind, they will have possibly pulled back below this though :)
This proves nothing, but it does show that bad fisherman can either get lucky or get better so long as they don't starve first.
