Gold was crushed today, and those of us focused on the long-term see it as a potential buying opportunity. I’m a big believer in precious metals for financial security. I’m not necessarily a big believer in the inflation story for a number of reasons, but the reality is that there are massive, massive deflationary forces in the economy right now. Why would that be bullish for gold? Because I’m also convinced that the government will do whatever it takes to fight deflation (since our entire system depends on continuous expansion and inflation). It will be the loss of confidence that will drive gold to insane levels.
Now, you’ll hear people shout that the gold bull run is over if this correction materializes. This is when its best to buy gold, when people are vocal about it in a bearish manner. Be patient and wait for opportunities – for now, it might even go lower. I will be watching gold with a close eye and loading up on gold stocks and potentially some physical silver.