Submitted by Morris Hubbartt:
Ultimately, markets are driven by fear and greed. In the current gold market, there is a lot of fear. Also, most mainstream money managers believe a full economic recovery is underway, so there is no need to own gold. My worst-case scenario model shows that gold could fall to $1350, but I don’t see that happening.
Only a small amount of gold is brought to market each year. Most assets can be substantially diluted in one way or another, but not gold. Physical gold and silver are probably the highest quality assets that an investor can own. Fear of lower prices should not deter anyone from holding gold. Note the oversold condition of the slow Stokes indicator and RSI on this weekly chart. There is only one thing for long term investors to do, and that is to hold their positions. Buy more, if additional weakness comes.