Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Diagnosis Of Gold Correction: Normal

Oct. 13, 2016

Diagnosis Of Gold Correction: Normal

 

Murphy’s Law, applied to gold and silver: the price will fall right after you buy.

New GoldSilver Law: it doesn’t matter. Prices will be a lot higher in a couple years (and you should focus on how many ounces you own anyway).

As most of you know, gold and silver have been on a tear this year. Gold hit $1,363.75 (based on London PM fix) on August 2. But yesterday it fell to $1,253.45, what amounts to an 8.1% pullback.

As you’re about to see, this decline is completely normal. That’s not me saying so; that’s what history shows.

I have some data on corrections I want to share with you. The reason I’m sharing it is because I want us all to be prepared for what’s ahead…

The following charts look at the size and frequency of corrections during gold’s two biggest bull markets in modern history. First up is the 2001-2011 run. Look how many corrections there were and how big some of them got. I added our current pullback so you can put it in perspective

To continue reading please click link https://goldsilver.com/blog/diagnosis-of-gold-correction-normal/