Gold Coin Prices in Correctional Phase Now

The movement in the market this week consists of a long overdue correctional phase in gold coin prices that will continue through to a consolidation period before moving higher in the continuation of the long-term bull market. Gold has been in a bull market for ten years now, which means a relatively serious correction is overdue, particularly since the major price increases of the past three years have added so much value and fervor to the gold market.

There are going to be many market analysts in the next week who will probably misunderstand the current correctional period and proclaim the bull market in gold to be over. This has happened at varying intervals in the market over the past year. After spectacularly incorrect projections last fall and winter, during our two major last correctional periods, the gold bears have been relatively quiet.

Indeed, the movement in trading of $45 per troy ounce, and crossing the psychologically important $1,600 price line will spook many traders, particularly those who had significant positions in the market without understanding the long term health of the market. Any call to the end of the bull market would be, however, incorrect, as market fundamentals still place gold coin prices higher by the end of the year.

In a decade long bull market, there need to be correctional phases to even out the market and to continue on the market trend safely. Any straight move up in a market is unhealthy, to put it another way. The current move downward was both foreseen and projected by veteran investors and traders are simply playing the move.

For holders of physical, which we all should be, this move represents a buying opportunity near the low. China is already buying again after a period of quiescence, continuing the trend of Asian buying on the dip. American investors will begin buying when a clear bottom is more firmly established and they will ride the gold price to the top.

The market is fundamentally healthy as today’s action represents more of a market dynamic event and a psychologically significant event both in the gold market and in investors. Psychology is fundamentally important in markets and the spook that we will see in the gold market over the coming week and more will be a witness to that fact.

Correctional periods are signs of a healthy market, however, and we are on track to see the price of gold coins consolidate and move much higher over the coming half year.

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine