Gold and silver: Correction time.

On 6 Oct, Jim Rogers suggested that "Gold could correct for a few months [but] the bull market in gold is not over - far from it".  So, wait for a correction to buy more gold.

A correction could be anywhere from 10% to 20% decline in price.  Anything more than 20% would suggest the start of a bear market. Gold has retreated to US$ 1,365.40 /oz in the last session after going to an all time high of US$ 1,412.75 /oz.

Just as a rough gauge, 10% correction would see gold at US$ 1,271.48 /oz while a 20% correction would see gold at US$ 1,129.60 /oz. On 6 Oct, I said that "In case of a correction, I see immediate support at US$1,250 an ounce, followed by US$1,200 an ounce."  I would buy more then.

What about silver? For me, it is quite easy as silver generally tracks the movement of gold although imperfectly. When I buy more gold, I would buy more silver.


Related post:
Buying gold? Wait for a correction.