Gold Prices could fall to $1300 and still be in a bull trend...
THIS WEEK saw Gold Prices plunge 8% in just three days, writes Brian Hunt for Steve Sjuggerud's Daily Wealth.
This ugly price action has many folks up in arms. Latecomers have lost big. Anti-gold advisors and bloggers have gleefully declared the bull market over. It's during times like this that we at Daily Wealth urge people to take a deep breath, remember why gold has climbed for 10 straight years, and look at the "long view."
Our regular readers know the two major reasons gold is rising. One, Western governments in the US and Europe have taken on debts and obligations that cannot possibly be paid with sound honest, money. They will be paid with devalued, debased paper money.
Gold and silver, being "real money," rise as a result. And two, the relatively poor countries of Asia are growing richer. They have a centuries-old cultural affinity for gold and silver. And they are buying in size.
As for the "long view," you can find it in the chart below:
It shows Gold Prices over the past 10 years. Note that gold has had a heck of a run. And since no bull market heads higher without plenty of "shakeouts" on the way up, it's only reasonable to see declines like we've seen this month. Taking this "long view," we see that gold could fall all the way down to $1300 per ounce and remain in the cozy confines of its bull trend.
Source; http://goldnews.bullionvault.com/gold_prices_121620115
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