Buying the Gold Price Breakout

Peter Grandich: We compared the gold market now to what it was like in the early 1980s....through the 50s, 60s, 70s the Dow Jones Industrial Average was trapped between 700 and 1000. By the early 1980s, equities became so out of favor that there was an infamous Business Week Magazine front page story that said equities are dead. They were not owned largely by the public.....[but then] the Dow broke through 1000 and stayed through 1000 and ran much higher....along the way many people in the early stages kept saying it's got to pullback, it's got to exhaust itself because they became so accustomed to it being in a trading range.

Peter Grandich: Gold had a major breakout above $1,000. We had called it and said it would go from a ceiling to a floor. My personal opinion is....I don't believe in my lifetime...we we'll see a price of three digits or less in gold again. If there is a correction to come, if there is a serious consolidation I don't think it will be much...[but] gold has somewhat been self correcting itself. It's has many intra-day corrections [where we] go lower, [where we] see the paper market at the Comex hit stops and suddenly within an hour or two it was heading back or surpassed the point where those sells came in. It was kind of like a self correction. (more)