Gold Purchased

Today i made a small purchase of Gold (paper rather than physical).

This is the first gold purchase for over a year, during which my existing holdings have declined over 20% in value. I hadn't considered adding to this investment until the recent downward leg towards $1200 an ounce.

Whether it is true or not $1200 is often quoted as the break even point for current production, leading many commentators / analysts to view it as a potential floor at which supply will cease to increase. Whilst i'm not sure about this theory (demand could still evaporate!), i decided to average down the purchase cost of my investment with a small additional purchase.

My holdings of metals are still a small proportion of my investments (and a tiny proportion of total assets) and i intend to keep it this way.  The purchase roughly equates to the loss in value of the original holdings.