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My wife didn’t seem to understand the difference between “the bottom is in” and “there could be another correction.”  If Susan is confused on this issue, I figure many of our readers are, because Susan is very up on what is happening.

Gold dropped to just under $1200 late last fall.  That is “the bottom.”  It’s up almost $150 from the low.  I don’t think we will test that number again.  Gold “could” drop over $100 from here, but it also “could” rise by thousands!  Do you like the odds?  Is the risk/reward in your favor now?  Of course it is.  The current prices, although not at the “low,” are scraping the bottom.  When is the best time to buy?  When prices are scraping the bottom.

That is not a sales pitch, it’s a fact.  We sure would like to get you back in this close to the bottom.  We did it once before, in early 2001.  Six months from now, it will be clear that the summer of 2014 was the low, not just for the year, but for the past three-year correction.

Well, what do you know – I found something that we can agree on.  Truth is gold has already bottomed, so therefore they are correct.  Here is an article from Kitco.com:

Bank Of America Merrill Lynch Looks For Gold To Bottom In 2014 – www.kitco.com

Monday June 30, 2014 11:20 AM

Bank of America Merrill Lynch says it looks for gold to bottom in 2014. Its most recent forecast calls for $1,250 gold in the third quarter, rebounding to $1,300 in the fourth and $1,350 in the first quarter of 2015. “We believe that market participants are increasingly willing to raise their exposure to gold as a hedge against inflation of some asset prices and the confluence of risks accompanying those,” BAML says. “In addition, with India’s elections over, our local economics team anticipates an appreciation of the rupee partially on accelerating portfolio inflows. Keeping in mind that the previous administration had curbed gold imports to contain the country’s current account deficit, we believe this should incentivize authorities to facilitate an increase of gold shipments in coming weeks and months. While this may not be sufficient to offset headwinds from the global macro economy, it should give some support to gold, which we believe is unlikely to fall below $1,150/oz as a result.” One risk to the market, however, would be if Chinese buyers from 2013 became sellers in 2014, with offtake more muted than a year ago, the bank adds.

By Allen Sykora of Kitco News; asykora@kitco.com