Gold As Insurance (Following is the third installment in a series of articles by Chuck Cohen, a seasoned and highly successful investment consultant who lives in New York City. We will be featuring Chuck’s thoughts regularly at Rick’s Picks in order to expand our coverage, in particular, of junior mining shares, a core area of his expertise. In the coming weeks, Chuck will take up the topics of gold as a core investment, and gold as a speculative vehicle. Today he tackles gold’s usefulness as insurance against financial calamity“. RA) No One-Size-Fits-All Strategy In spite of the sharp drop in shares over the past nine years or so, most investors remain firmly committed to common stocks. Mutual fund statistics show that very few holders have pulled their money out of their funds. And the recent “Big Money Poll” in Barron’s shows that the big guys are even surer than they were even at the very top. It is clear that investors have been stirred, but far from shaken, by the decade’s decline and by our faltering economy. And gold? To many investors and even professionals, buying gold is like traveling to Myanmar or northern Pakistan: Few dare to venture there. The truth is, that to our Ivy League and Keynesian educated financial community, gold is viewed as a superstitious... Read the Rest of the Article | Comments *** Money management There are systems that are based upon money management alone. The principle is basically the 1/2 way to the wall principle. If each time you go 1/2 way to the wall you will never get there. I have heard so many say that they will take 10% loss or a 5% stop. That like the 1/2 way to the wall theory is, if each time you take a 5% loss you
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