Ezine No4

1. Gareth Horsfall
Mr
+39 333 6492356 (w)
Viale Trastevere, 227
Rome (RM) 00153
Italy
GOLD! Feel the rush.
The title of the e-zine may not resonate with you when only today
the world stock markets have been shaken with the unrest in
Egypt, and possible spread of disturbances to other areas in the
Middle East. So why would I write about Gold being a bad
investment when it increased in value on the back of this same
news, and, in addition, I have written in these e-zines many
times before that more volatility lies ahead?
The problem, the way I understand it, is that Gold is a natural safe haven for investment purposes
in times of market volatility, political and social unrest. But with Gold at nearly $1400 a troy
ounce, it is not what I would call an "investment". An investment is something that you buy near
its true value. The manufacturing cost of Gold is near $450 -$500 an ounce so there is no value
in it as a long term investment. What you have is a speculative momentum.
WRONG?!
Yes, I could be wrong. The world's economy could continue headlong into another financial
crisis, and the USA might not reduce its $1.48 trillion deficit and its economy go into permanent
decline. However, like any speculative investment, gold can turn the other way just as
suddenly. It may fall just quickly as hedge fund managers can dispose of it. It is as easy as the
click of a mouse.
A PART OF MY PORTFOLIO
Should you dismiss Gold totally in your portfolio? Definitely not and you may want to allocate 5-
10% to Gold. But bear the following in mind: If Gold is performing very well then the other assets

2. in your portfolio are probably not doing quite so well. Therefore, for all our sakes, let's hope the
shine comes off Gold pretty soon.
Locking in those gains
Re-balancing your portfolio is a technique that will save your
neck...and possibly your heart!
Portfolio re-balancing is one of the most misunderstood concepts
for individual investors. The very idea of selling some of an asset
that has performed well, and reinvesting the proceeds in an
asset that has performed poorly just seems wrong.
However, it should be one of the most widely followed rules for every single individual investor.
Institutional investors re-balance religiously and wouldn't dream of not doing so. This could be
one of the reasons why they routinely outperform individuals year after year.
Re-balancing is simply the process of returning the weightings of one's portfolio of assets to the
original allocation. For example, if your portfolio's proportion of shares has grown and become too
large for your intended preference to investment risk, you might re-balance by selling some
shares and putting it into cash or bonds.
Making these adjustments can make all the difference between complete financial success and
dismal failure.
24 hours in a day
Time! How I wish I could buy some more at the moment. There
never seems to be enough hours in the day to do everything you
want to do.
But I know how important it is to take time out for yourself and
concentrate on the financial matters, every now and again.
As always, feel free to get in touch if you have any questions,
would like more information or you would just like an update on your finances.
Disclaimer
The views expressed here are my own. They are not necessarily shared by AES International.
They are subject to change at any time based on market and other conditions. This is not an offer
or solicitation for the purchase or sale of any security and should not be construed as such.
References to specific securities are for illustrative or informational purposes only and are not

3. intended to be, and should not be interpreted as, recommendations to purchase or sell such
securities.