This past week saw the worst trading day of 2012 so far.
Depressing growth expectations out of China weighed heavily on the markets, and further unrest in Greece played a hand in the downward spiral as well.
This carnage led to benchmark stock indexes tanking for a third straight session with the DOW falling 0.4% for the week – its second straight weekly drop and the longest streak since 2006.
However, I loved it.
My fingers were crossed, hoping the markets would fall even lower. (Too bad they didn’t!)
You see, while most eyes were watching global markets slip considerably, I was watching gold.
Gold has been on the rise for the past 11 years.
But this past week, prices dropped more than $100 over a 5-day span to reach $1,672.10 an ounce.
Was this the sign that gold’s run was finally over?
Not a chance.
In fact, many economists and experts believe gold will reach $2,200 by the end of 2012.
That’s a projected 31% gain from today’s prices in only 9 months.
In fact, I strongly believe gold prices could spike even sooner!
Think I am exaggerating?
Take a look at this.
In 2008, gold was trading at a mere $986.00, almost half of what it’s trading at today. Since that time we have seen our fair shares of bailouts, including Citigroup Inc. and Fannie Mae and Freddie Mac, to name but a few.
Trillions in liquidity – created out of thin air – was injected into the system to keep these companies afloat.
Meanwhile, gold prices have been unstoppable – topping the charts last September at $1,921.15 an ounce.
The correlation between bailouts and gold is uncanny!
Now with another massive bailout for Greece on the way, it looks like prices could rise much sooner rather than later.
They’ve qualified for a second bailout after swapping their existing bonds for bonds with lower interest rates – thereby avoiding defaulting on their debt.
But after already having received funds exceeding $150 billion, another bailout of $172 billion will only lead to additional bullish investor sentiment towards gold.
Why pass on the opportunity when we all know that gold prices are about to climb higher?
Buying On The Dip
Sometimes prices defy fundamentals and drop when the markets are down.
One of those times is right now.
This pullback in gold has given investors a great opportunity to buy in at a relatively low-cost.
But in order to take advantage, you must be able to stomach buying when everyone else is selling. My advice? Take advantage of the small dip right now if you want to maximize gold’s value.
Listen, I don’t stand alone in saying gold is on an upward trend. And with a massive Greek bailout on its way, you may never see these low prices again.
This past week has created the best gold trading play of 2012.
Don’t miss it!
for Top Stock Millionaire