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.
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’.
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.
Plenty of notable investors have made their voices…
