After hitting a record $1,422 an ounce in December of 2010, the current correction in the on-going 10-year gold bull market has brought gold down almost $100 to $1,322 per ounce. Note that I think this is a correction, not a change to bear. Despite improving economies, I think gold is still underowned today. This, if we understand the three phases of a bull market.
Phase one is when the bull market develops and few even know it is happening.
Phase two is when the smart money gets in (that is where we are today).
And phase three is when the popular media picks up the bull market, the investing public starts buying and speculation sets in.
However, with really none of the popular media covering the advance in gold prices, the second phase of the bull market remains a safe and lucrative place to put our money... and I believe this correction offers me an opportunity to add positions in gold and Chinese gold mining company Zhaojin.
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