Battered by gold; whipped by silver.

Wednesday, Jan 04 2012 by
5
Battered by gold whipped by silver

As we enter the New Year only the firmest of gold and silver investors are holding with serene assurance, as the gold and silver prices have been trending down for a couple of months.

Prices have softened again since our latest update on this issue, and thin markets over the festive period allowed relatively low levels of market activity to have an un-naturally significant effect on price direction. These things happen.

Gold has sold off by nearly 13% since it recovered to $1,800/ounce in early November. The mainstream media has been pronouncing the death of the gold bull market, and CNBC even suggested gold be re-rated as a risk asset.

Bumps in the road for gold investors


Considered investors should note that such sell offs have been commonplace on this now 12 year gold bull market. The chart below from Casey Research shows exactly this, and puts recent price declines in context.


Gold Price Corrections Since 2000

 

 

 

 

 

 

 

 

 

 

 

 

All these price corrections have occurred in what has proved a very rewarding trend for gold investors.

It is no wonder that Brian Hunt refers to a chart of gold’s performance over the past 12 years ‘The Chart of the Millennium’.

Gold Price Chart Of The Millenium

 

 

 

 

 

 

 

 

 

 

 

Silver price corrections are routine


Silver prices have also disappointed precious metal investors. Gold’s more volatile cousin has lost 20% in value from its own early November recovery to $35/ounce.

Such price drops do get us thinking, an investor can never fall idly in love with a position, but are they again part and parcel of silver investing this last 12 years?

Well, thanks to Jeff Clark and Casey Research, the chart below suggests the affirmative.


Silver Price Corrections Since 2000

 

 

 

 

 

 

 

 

 

 

 

Plenty of notable investors have made their voices…

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Disclaimer:  

All articles and information published by executives of The Real Asset Company are to inform and aid your thinking and investment decisions, not lead them. Information or data included here within may already be out of date or touch, and must be verified by you elsewhere, should you choose to act on it. 


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About Will Bancroft

Will Bancroft

Will is Co-Founder and COO of The Real Asset Company, a platform for buying gold and silver bullion efficiently online, stored in a global range of vaults. Will manages digital and operations, also finding time to contribute to the Research Desk alongside Jan Skoyles. He is Austrian in his economics, liberty minded above all else, and an active DIY investor. more »

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