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The majority of the news out and about concerning gold and silver consists of tentative positions on the correction currently underway.

March 21, 2012 – The majority of the news out and about concerning gold and silver consists of tentative positions on the correction currently underway. Technically speaking, a correction is a 10 percent to 20 percent reduction in a fundamentally upward market. We are seeing all the fundamental indicators of a bull market in gold and silver, but the price today is 13 percent off recent highs, leading to a calling of a correction.

Of course, there are those on the anti-gold and gold-naysayer side who are beginning to call the end of the gold bull market. The last time they did that was in December of 2011, the last correction. Remember that corrections are a normal and health function of any bull market and generally give an assurance that there is still much room for growth on the upside. Nothing moves straight up, and if it did it would be cause for worry.

Last time the naysayers called the end of the bull market, one very famous commodities trader, Dennis Gartman, actually had to publicly apologize for his forecast. He also lost a lot of money by selling his gold. There are a handful of others who made similar declarations, but they seem to have learned their lesson the hard way and remain silent now.

Gold and silver are merely in a correctional phase during a very protracted, healthy, and strong bull market. They are poised to make significant gains on the upside commensurate with gains previously made. Remember that gold is currently $300 off its all time high and almost $20 off its all time high set back in 1981.

Further, a report from the World Gold Council recently released revealed that during the correctional phases of September 2011 and December 2011 the central banks in the developed countries of the world bought gold at forty year highs. Not since the end of Bretton Woods have central banks been buying gold at the current volume. This should be a message to every investor about the relevance and role of gold going forward.

Keeping these facts and figures in mind will help the average investor consider the current prices of gold and silver and consider how much room there is for investing in the metals now.

Shannon King

Senior Staff Writer – GoldSilver.org

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