Historically in times of strife, be it war or a financial crisis, gold has been the world's safe haven. It’s a place investors go to preserve the value of their investment. But that didn't happen this week, puzzling some of the most experienced Wall Street players. What's the trade when there is no shelter from the storm?
Eric Bolling said gold didn't act normal this week because traders taking a hit on stocks cashed in their winning gold positions to compensate. (Gold had been up for seven straight weeks.)
“Here are two reasons why you have to own gold,” Bolling said. 1) The dollar is finished. 2) Iran and Venezuela seem to be closer allies. If that happens, there’s a serious concern these two countries could place a strangle-hold on oil.
"So, When does gold resume it’s upward trend?" asked Erin Burnett.
Eric said use this as a buying opportunity to buy a gold ETF like the streetTracks Gold Trust (GLD) , but don't go crazy. Add a little gold to your portfolio now and add more if it starts to go higher, said the traderdanced around that question and little but said, “I think you have to have gold in your portfolio. Have a little now. If you had listened to me a year ago, you’d be up 45%.”
“The bottom line,” said Erin Burnett “is diversification is probably a smart idea in your portfolio even though gold didn’t work.”