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Gold, Time To Buy?

|Includes:SPDR Gold Trust ETF (GLD)

As long as governments around the world keep their money printing presses on Mach 1 a prudent investor would be wise to have a small percentage of their portfolio allocated in gold. So if you are thinking about buying some gold the question is this, does the recent sell-off of the precious metal signal an opportunity to buy?

My answer is no. I use the chart below to make my decision.

Chart forSPDR Gold Shares (NYSEARCA:<a href='http://seekingalpha.com/symbol/GLD' title='SPDR Gold Trust ETF'>GLD</a>)

looking at the one year chart for the price of gold you can see there is some resistance when gold drops to 1300. I do not think now is the time to buy gold clearly it is not in favor at the moment, but since I argue everyone should have some gold to protect themselves from currency devaluation; I would wait till the price drops below 1300 you will most likely be getting the best possible price when that happens.

Disclosure: I am long GLD.

Stocks: GLD