By J. Keith Johnson, Hard Assets Alliance
As 2012 slips into memory, many have now embraced the tradition of setting resolutions for the new year. Part of this practice often includes examining the past year or two in an effort to assess where we are today and how that fits in our overall goals.
There are many benefits to examining our past as part of setting goals for the future.
We learn from our mistakes.
Current goals can be adjusted according to milestones we’ve met, how well we’ve been able to meet deadlines, and the results of our efforts.
New goals can be established in our effort to grow, mature, and prosper.
But these exercises also help us gain a more precise perspective of the bigger picture. As our perception becomes more accurate, our larger goals can be seen more clearly through the haze of immediacy that sometimes obscures our vision.
For those of us invested in precious metals, such an exercise provides a constant reminder of the reasons we hold them. As an example, consider the past few months. At the close of the year, gold had dropped $127 since its September high of $1,784.50. Clearly, this could cause some distress for gold holders, leaving many to question their reasons for owning the yellow metal.
However, looking back only a couple more months reveals gold’s year-end close to be more than $100 higher than July’s low of $1,556.25. Furthermore, with total gains of 8.26%, 2012 is gold’s third-worst year in the past decade.