I love weeks like these. Gold plunged almost $130 and Silver fell $4. In the past year Gold is still up 40% and Silver is up 30%. Not too shabby.

This is a much needed correction and as usual it happened with ferocious speed and destruction. This wonderful type of volatility scared the daylights out of most investors. Rather than buy they sell.

If you were shopping for say a new bed. This bed keeps getting rave reviews, solves all back problems and continues to go up in prices year over year as supply is limited or falling. One day you are looking at this bed wishing you’d bought it 6 years ago when all of a sudden the salesman announces throughout the store that the bed will be 10% off but only for a limited time. He won’t tell you how long for but he assures you it won’t be long and that the price will go back to normal and begin appreciating soon thereafter at a greater rate than in the past.

What do you do? Call your wife or husband and plead your case? Or run and hope to buy it later at a better price you know will never come.

This is EXACTLY what is happening in the Gold and Silver markets TODAY. You are being offered the best wealth protection mechanism at a near instant 10% to 20% discount to last week. And although the price is still 40% and 30% higher than last year you just know it is a great buy.

Think of it as a sale. Once some support is found all that will happen is that will be the new bottom. Prices will go up from there. It’s very simple but so hard to do. Never buy when everyone else is. Always buy when nobody is. This is a bull market in Gold and Silver. Buy on the dips and hold until you hear nothing but Gold and Silver for a few months as the blow off peak will be well underway. People will tell you you’re crazy to be selling then, but time will prove your wisdom, if you can check your emotions at the door with your coat and see clearly.

But as they say the bull market will save you. Meaning if you buy the tops and it corrects the bull will save you over time. If you bought Silver when it first hit $15 you suffered for over a year as it floated around $12. Although that’s no fun, would you even remember it now? The bull saved you and cleared your mind of the bad memories.

It sounds so simple but very few can actually pull it off. Gold and Silver will go nuts in the next few years. Mark my words. Gold will be over $3000 and Silver will approach $200. I know I sound nuts but in my mind I am being too conservative. Time will tell. Which group do you want to be a part of the winners selling at the top or the losers buying at the top? We should have all learned that great bull markets are not recommended to you until the funds and brokerage houses have all their money where they want it to be. Then they tell you about a great investment which happens to be where their money is and they will gladly sell it to you for a large profit.

You may think by my other articles and my website www.preciousmetalstockreview.com that I am a gold bug. I am...now, honestly this is one tough sector to dissect but it has been and will continue to be the major bull market right now. Until that changes I will remain a gold bug. Follow the money wherever that may be and you will reap the rewards.

The psychology of markets, people and trends is more important than a deep understanding of the inner workings of financial markets. Take a step back.

A wise sage once told me he has made the greatest gains looking at 30 year charts and reacting slowly. Study great investors and you will see; the road to riches is clear, not quick.

Regards,

Warren Bevan

www.preciousmetalstockreview.com