I've been following gold daily since 2004. There have been several up and down trends during that period. This current down trend which started in September is not over. The HUI has dropped from 630 to 440, a 30% drop. That is brutal. For Juniors, the drop has been more than 50% for many stocks. But it is not over yet. Keep your powder dry. At some point this year we will see a bottom for this current down trend.
Why haven't we found the bottom? Because the stock market has not rolled over, and that is likely to happen this year. We haven't had a major correction since March 2009. Last year the DOW dropped 14%, but I don't consider that a major correction. I've been waiting for the economic fundamentals to be reflected in the stock market. That means volatility and a major correction.
If we do get the correction I am am expecting, gold will drop much lower sometime this year. I'm expecting 1500 to be breached. That is the number to look for and to begin buying -- hand over fist. This will be the dip to buy.
If this happens, you are going to want to buy both physical gold and silver, and the mining stocks. This is going to be the best opportunity since early 2009 for the stocks. There are going to be a lot of fantastic deals.
Check out my mining database for companies with high ratings that are severely undervalued. Or, wait patiently for SIL and GLDX to reach new lows, then load up. It's probably going to happen.
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