By Ryan McGuire for Gold Avalanche
April 23rd, 2012
Turn on the television or flip through the pages of any major newspaper, and the top stories will be either the stock market's unrelenting rise in recent months or gold's fall from grace.
Without question, both are worthy of note - but the real story is the question of whether gold and silver were in a bubble that popped, or weather their rises and falls are part of a major bull market. Reaching highs of nearly $50 per ounce last year, silver has fallen a stunning 34% since last July while gold has fallen roughly 13%. Investors need to know that this has been, and continues to be a correction. This means that we are not outside the realm of past moves in the metal.
Casey Research has reported on these moves in Gold and Silver several times over the past month. One look at the table of past corrections of 5% or more from this April 9th 2012 Casey Daily Dispatch shows that there have been 10 corrections of 10% or more over the past 10 years in gold, and of those corrections, 6 were greater than 15% and 2 were greater than 20%.
This April 2nd, 2012 Casey Daily Dispatch shows us that Gold benefits the most when real interest rates are below 2. In fact the current 11 year bull market in Gold is very much related to the fact that real interest rates have stayed below +2% since 2002, save for a few spikes in 2006 and 2009.
Stay Tuned for more on this topic
In the meantime, check out our commentary on Gold, Silver, and their respective equities. Today, the GDX made another 52-week low. For investors with a taste for fundamental value, this may be another buying opportunity.
April 23rd, 2012
Turn on the television or flip through the pages of any major newspaper, and the top stories will be either the stock market's unrelenting rise in recent months or gold's fall from grace.
Without question, both are worthy of note - but the real story is the question of whether gold and silver were in a bubble that popped, or weather their rises and falls are part of a major bull market. Reaching highs of nearly $50 per ounce last year, silver has fallen a stunning 34% since last July while gold has fallen roughly 13%. Investors need to know that this has been, and continues to be a correction. This means that we are not outside the realm of past moves in the metal.
Casey Research has reported on these moves in Gold and Silver several times over the past month. One look at the table of past corrections of 5% or more from this April 9th 2012 Casey Daily Dispatch shows that there have been 10 corrections of 10% or more over the past 10 years in gold, and of those corrections, 6 were greater than 15% and 2 were greater than 20%.
This April 2nd, 2012 Casey Daily Dispatch shows us that Gold benefits the most when real interest rates are below 2. In fact the current 11 year bull market in Gold is very much related to the fact that real interest rates have stayed below +2% since 2002, save for a few spikes in 2006 and 2009.
Stay Tuned for more on this topic
In the meantime, check out our commentary on Gold, Silver, and their respective equities. Today, the GDX made another 52-week low. For investors with a taste for fundamental value, this may be another buying opportunity.
