Your seeing the gold/dollar relationship drop as the safe haven money that flowed from the Dollar into the Euro is coming back amidst Euro fears. Sooner or later the relationship of Gold/Fiat Currency will break down and Gold will appreciate regardless of currency. If your were trading gold 1200 was a good level to take some off the table, we are heading back into the area to reload. Unfortunately when the above SHTF scenario finally unfolds it will be bad. Long term gold is a hedge against that possible outcome. Buy a % of your portfolio (physical) in the dips, preferable to cash. Fwiw,
Gold stocks are meant to be traded (now). Back before the unlimited paper syndrome that we are in now, they could have been investments. Paper futures gold is meant to be traded, although I would not recommend it unless you want to have a religious experience at some point. Gold the "metal" is an insurance policy against the printing presses, quantitative easing, gargantuan derivatives, national defaults, state defaults, unscrupulous politicians, a supreme court that believes that our politicians need more special interest money to cloud their judgment, and on and on and on. Every time I get scared and want to sell my gold, I just think about these things and change my mind pretty quickly. Gold will always be worth something. It is an asset. It is not paper. It can not be reproduced at will or digitally increased at will to infinity with a mouse click. Gold is real. Paper is paper.
i love this if you flip it upside down itskinda looks just like the us tax rate percentages since ........1913 http://www.taxfoundation.org/publications/show/151.html
Its all a game to fleece you of the money you put in over $1100 by getting you to dump for a loss. You need to learn to sell glee and buy sheer panic, and learn to wait for what you bought in the panic to be worth something again if you want to trade. Real metal should just be accumulated from profits during the panics if you ask me. It will be the last thing I sell if and when I ever need to. I'll admit, if I see Gold for Cash shops on every corner with lines at them and sillysphere prices, I will sell a good portion of my metal, but otherwise, I think I'll hang onto it. PS: I think the central banks will be buying gold for the next 10 or 20 years as the dollar is destroyed and moved from worlds reserve currency to scourge of the earth status.