Gold has entered the bear market

Summary: While it’s technically true that gold entered a bull market (defined as 20% off a high), this analysis from Eugen Weinberg explains that gold has seen more severe shocks in the past and subsequently recovered. He disagrees with the claim that gold was in a bubble and has now popped. And while the price drop was pretty steep in a short amount of time, Weinberg explains it’s nothing more than a consolidation and that gold’s long-term outlook is still very solid. He explains that after a 600% increase over the last 12 years, gold was most certainly due for some sort of a correction. Weinberg expects gold to be in a recovery for the rest of 2013 and finish the year at around $1650, and possibly continue higher toward $1800 in 2014. Next year is harder to forecast he explains because we don’t yet know what central banks will be doing. Read more…