Why its time to invest in gold

Investors in gold have to be on alert today. After a secular bull market with more than 10 years of new highs, the gold price has been in correction since spiking at an all-time high of $1,920 per ounce in late 2011. Measured from peak to trough, gold prices fell some 19 percent between then and now. However, a secular bull market will include bear periods and a drop of such a scale is common for a correction, which we have witnessed in the past 12 years with gold prices. In contrast, gold equities are in a deep bear market. Gold stocks usually overreact to swings in bullion prices and that is exactly what we are currently witnessing. After dropping around 17 percent in 2011 and more than 10 percent in 2012, gold equities have plunged a whopping 20 percent in the first two months of 2013. This latest, prolonged