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Gold is up 9.9 percent on the year, despite the current dip and the correction in September.

December 30, 2011 – Though there has been a lot of talk lately about the correction we’re currently experiencing in gold, gold coin is still the investment of the year as gold has outperformed every other asset class. Gold is up 9.9 percent on the year, despite the current dip and the correction in September.

For any who may have forgotten, it has since been reported in mainstream media that following the September correction central banks around the world were net buyers of gold in quantities not seen since the end of Bretton Woods in 1971. Corrections are to be expected here and there as they signal a healthy market that still has room to grow upwards.

And as far as analysts bashing gold, keep in mind who those analysts are and what they do. George Soros might be selling some gold now, though it would be a very bad investment strategy, but why should that matter to long-term investors who are making their money work for them, protecting their retirements, or providing for their children? George Soros is the guy who called gold “the ultimate bubble” in January 2010 when it was trading at $1,225 an ounce. Meanwhile, off-camera, he was a net-buyer of gold.

Then, the Telegraph reported in May of 2011 that George Soros had sold “almost his entire holding” of gold. This sparked huge concern in the market that the man who broke the Bank of England was signaling an imminent price collapse. Of course, Soros lost a lot of money when gold hit an all-time high in August of 2011. Missed that one, I guess.

The market fundamentals for gold such as permanently low interest rates per Federal Reserve policy and negative real interest rates indicate a gold bull market for a long time to come. We will experience corrections, as we’re experiencing now, but these are also known as buying opportunities. We have seen three 20 percent corrections in gold since the bull market began in 2000-2001 and each time the fundamentals kept the market intact and gold rebounded. Expect the price to be in correction territory and know that means the price of gold is more affordable right now. Investments in gold coin made now will pay off and pay off big in the months and years to come.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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