Getting Closer!

You can see from the Monthly Gold chart above that we've fallen halfway down to the breakout line signalling Phase 2 of the Gold Bull. We've fallen about 100 dollars from the highs. We could easily fall another 100 to test the breakout.

We are SO LUCKY. If and when we get there that would be the trading opportunity of a lifetime.

We may not get there, which is why we're already in a wonderful place for those needing to build up their CORE positions.

What's the difference? Your core position should be in bullion. Why? Because bullion is real money. You will need real money if the paper monetary system suffers any type of break down. Yes, I know "End of times nonsense... why not buy guns and water... sit in your bunker.... blah blah blah..."

Look, Monetary Breakdown does not mean that the sun turns black, the skies fill with locusts and God will take the first born male child of every family. It means that what has already happened in Greece, Portugal, Ireland and Japan will happen in Spain, Italy, France and the United States of America. The idea that it can't, is part of some sort of Mystical Positivist Religion. If you happen to be a Believer, well, good for you. Maybe you'll end up being rewarded in the Afterlife with 1000 Virgins or whatever else you believe. For the rest of us, it's better to buy bullion.

So what about Corrections, like this? Don't value your bullion in dollars. Dollars are extremely volatile. Value your bullion in ounces. This is a great opportunity to get more cheaper.

So what about those of us crazy enough to trade gold?

Well, that's me too. Personally, I follow the advice I give here. I keep my trading positions manageable. I sell to be careful at points it seems a correction could be likely. Like two days ago when i suggested this one might be happening. In other worlds, I follow my own advice. Now I'm sitting tight with my TRADING position which is ZERO.

I'm waiting patiently for the test down into the high 1300's. There's sure to be a number of false starts between now and then. Maybe a bomb goes off somewhere and the correction is cut short. Assess that if and when. Maybe some Banks go under provoking another crisis. Assess that if and when. If you want to trade you have to stay on top of every possible occurrence that could affect your trade. But Occurrences may not effect gold at all. What's needed here is TIME.

As a rule, gold corrections are, sharp, volatile, frightening, and they provoke all the financial world's dimwits into pronouncing that the gold bull is over. That should be music to your ears. It usually takes a bit of time before you hear that. Of course, super dim wits like Larry Kudlow and Rick Edelman will probably pronounce the gold bull dead today - if they haven't already. It will take most of the dull normals a few weeks. Think early June. That's not so long in the scheme of things.

Meanwhile, look at the chart above. Does that look like a sick bull? So sit tight and enjoy this correction. And remember to get more ounces. They're on sale.