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While we are seeing a ten-week low in the price of gold coins and we have seen a breach of the 200-day moving average in the spot price, investors still recognize gold as a bull market.

December 16, 2011 – While we are seeing a ten-week low in the price of gold coins and we have seen a breach of the 200-day moving average in the spot price, investors still recognize gold as a bull market. This current correction in the market cannot last forever but it certainly generates some good buying opportunities. Proponents of a long-term view have not changed their perspective one iota this week and recognize the correction in gold can and must come to an end.

Calling the low is like calling the high—most analysts do it afterwards. The truth is we’re talking about a relatively low percentage in lost or gained yield, given you’re buying in the overall trend line. The price of gold coins is set to continue its bull market; so catching the curve most likely means you’ll miss it. The fundamentals show a market that is ready to go higher with currently low prices.

A similar action happened just in September of this year. We now know that during the third quarter, in response to the correction at that time, central banks began buying gold at forty-year highs. Central banks haven’t bought as much gold as they did in September since the 1970’s when Nixon first took us off the gold standard. Each correction that occurs is a buying opportunity in this market and central banks know it.

This of course is taking place as banks are taking significant risks with customer money. We’re still in the wake of the MF Global crisis, with Jon Corzine answering yet another round of questions before a Congressional Committee. The money’s pretty surely gone, however Corzine answers, and the bad trade MF Global made that caused the bank’s failure was completely legal per rulings from the government agency in charge of regulating the bank, the Commodities Futures Trading Commission.

This week, the buzzword is “rehypothecating,” which sounds almost academic, but it’s actually quite dangerous in that it means using customer gold instead of customer money as collateral on bank bets. Gold coins are the best way to get your money out of a system that has proven time and again that it cannot operate while leaving your account intact.

The current correction in prices is an opportunity for every kind of investor to take their money out of the banks that are misusing it and put it into gold coins, where the bull market will see your investment’s safety and growth over the next year.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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