Gold Bulls Unfazed By Recent Correction

I strongly suggest buying gold during this recent pullback if you haven’t already done so.

– Graham Summers, “Gold: The Last Cheap Asset Class”, Seeking Alpha, April 8

Gold is still in a long term bull market and there was no bubble to burst.

– Michael Kahn, “Gold Hasn’t Lost Its Shine” (subscription required), Barron’s March 31

There is a lot more upside for gold.

– Thomas Winmill, Portfolio Manager, The Midas Fund, in “5 reasons gold is headed to $1500”, Money Central, April 2

As most people who follow markets know, gold has undergone a nasty correction the last 3 weeks (Gold 6 Month Chart) dating to the Fed’s decision to “only” cut 75 basis points on Tuesday March 18 and the lip service they paid to inflation in the accompanying statement.

Many gold haters, and there are a lot of them for reasons I’m not going to get into here, have come out of the woodwork to declare this the popping of the gold bubble.

But many gold bulls remain unfazed.  For instance, check out:

“Gold Hasn’t Lost Its Shine”, Michael Kahn, Barron’s, March 31

“5 reasons gold is headed to $1500”, Michael Brush, Money Central, April 2

“Gold: The Last Cheap Asset Class”, Graham Summers, Seeking Alpha, April 8

“Gold Correction – I’m Not Worried”, Jason Hamlin, Seeking Alpha, April 8

This is a great opportunity for those of you who have been thinking about picking up some gold but worrying that it’s moved too far too fast to put on positions.  This pullback represents an opportunity: Buy Gold!