The real reason gold fell — and why it already has stabilized

Summary: This interview with Lawrence Roulston, editor and publisher of “Resource Opportunities,” discusses the recent implosion in the gold market and why it’s stabilizing. Roulston counters the argument of gold bears by saying how today is different from the late 1990s bust in gold and mining – back then, demand was low and supply was high. The opposite is true today. More people are demanding items like cell phones and refrigerators. More specifically for gold, the record spike in physical demand is a signal that the price drop last month was mostly driven by paper contracts, not the underlying metal itself. He anticipates short-term volatility for the rest of 2013. If you’re looking for mining stocks, Roulston suggests the ideal time to buy is just before a company announces a big discovery. Simply stated, Roulston suggests you keep expectations within reason, and be patient. Read more…