Healthy Correction in Gold Market -8% !

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Brent Johnson, the managing director of Baker Avenue Asset Management, a wealth management firm with over $700 million in assets. He forwarded some charts he’d prepared for his clients that put gold’s September decline into perspective… They’re a good visualization of my standing advice to worriers.

The following charts document corrections in the gold price of 8% or more – first measured with daily prices, then monthly, quarterly, and annually. See if this doesn’t put things into perspective.

According to Johnson, pullbacks represent buying opportunities. It demonstrates that one could buy any 8% drop with a high degree of confidence. Keep that in mind the next time gold pulls back.

Until the fundamental factors driving gold shift dramatically – something that would require most of them to completely reverse direction – we suggest deleting any worries about price fluctuations from your psyche.

The idea is that the daily and monthly gyrations are nothing to fret over, that the price will recover and, in time, fetch new highs.

By Jeff Clark of Casey Research, editor, BIG GOLD