Whilst we appreciate that it can be difficult watching the numbers assigned to your metals holding dropping suddenly and sharply, it is always important to understand the context within which the drops should be viewed, i.e. perfectly natural market movements in bull markets. It is well recognized fact that bull markets mostly happen with the majority of people watching, but too cautious to get involved, that is until they near their tops, and everybody then piles in.
It is not called “Climbing the wall of worry” for nothing, worry is not the danger sign, the danger sign is once everybody accepts it as “the norm” and that “you can’t lose” - that’s when you need to be worried. Here’s another great article on the nature of previous metals corrections by Jeff Clark of Casey Research
Precious Metal Pullbacks in Perspective
If you’re bullish about the long term for gold and silver, it’s mouthwatering to watch them undergo a major correction after taking earlier profits that added to your deployable cash. For a little historical perspective on pullbacks, consider the following charts.
The current 15.6% gold decline, while considered a “major” correction, is not out of the ordinary, particularly following the late summer spike. And after each big selloff, there was a price consolidation phase that in every instance led to higher prices. The message: hold on, and buy the big dips.
Not surprisingly, silver’s biggest corrections are larger than gold’s.
This is also true for the rebounds; they’ve been quite dramatic. If we apply the biggest three-month recovery of 44.3% to the current correction, that would take silver to $40.63… meaning we probably shouldn’t expect $60 silver by year-end.
..what we always say, we are 100% all in Gold & Silver, if you think now might be a good time protect your wealth with Gold &/or Silver: