The Gold Report: In a July research report, you wrote that the ongoing decline from the all-time high in the gold price may represent a correction of the last large up leg, which some say began in 2009 or mid-2008. Or it may represent a correction of the entire 1999 - 2011 advance in the gold price. Which is it? And has that correction run its course?
Tom Szabo: We are in a correction of the 20082011 rally and it is ongoing. Big picture, the gold price needs to drop below $1,155/ounce ($1,155/oz) and then subsequently below $1,067/oz before this would represent a correction of the entire gold cycle that goes back to 1999. We haven't seen such a decline at this point so we can't conclude that it's a larger correction.
TGR: We've seen modest upward momentum in the gold price since the lows of April. Is there enough momentum to invest in gold equities? [Read more...]