Gold prices posted their biggest two-session drop in 30 years Monday as retail investors and large institutional speculators capitulated to a six-month downdraft that accelerated in the last week into bear market territory. The violence of Monday's plunge reinforced the view that the 12-year bull market in gold is finished.
In New York trading, a troy ounce of gold closed at $1,360.60, a more than 9% plunge and the most extreme drop since 1983.
By the close of trading Monday, the price was off more than 13%, or more than $200 per ounce, from last Thursday's closing price of $1,564.90.
Why is this good news? It settles our nerves. And gives us an opportunity to buy more.
If you're in a card game and you look around the table... if you can't figure out who the fool is, he might be you. Then you get nervous. You start rubbing your hands or scratching your forehead. The other players will see that you've lost your nerve.
Then you're finished...