A long anticipated correction may be starting in GOLD.
The portfolio is well positioned and those investors who do not want to be fairly active may continue to hold existing positions.
Our models to not see a 2008 style crash. A correction is likely to be 7% to 12% range. The world economy is getting better, all of these positions are likely to be much higher over the next five years.
Gold has a major support in the zone of $1284 to $1287. There is a serious risk that this support will break. There are a lot of stops under this support. A typical pattern is for the price to be artificially suppressed as stops are taken out.
The point is that there is more risk in gold than stocks at this time. It is important to hold enough cash in reserve to buy gold when the opportunity comes.
