Gold remains a strong an “insurance policy” for portfolios even as recent unrest in the banking sector has weighed on the commodity, according to an executive at a precious metal investment company.

As of 12:30 p.m. on Monday, the price of gold was at 1,957.31, down 1.06 per cent for the day.

Sprott. Inc CEO Whitney George told BNN Bloomberg that he’s not concerned about the dip. He said physical assets like gold became particularly popular among investors after the 2008 financial crisis, when there were concerns about the stability of investments.

“Gold is an insurance policy for portfolios,” George said in a television interview on Monday.

“It serves a very useful purpose … but from time to time it is going to be subjected to the same factors that every other asset class is.”

Gold can be sold off quickly during a liquidity crisis like the one currently plaguing U.S. banks, George said, but he expects that to stabilize soon.

“Once the liquidity crisis is resolved, replacing that insurance is the first thing people do.”

Watch the video above for the full interview with George.