On Friday, October 11th, there was a market selloff in gold which sent the price plummeting down $60 per ounce. This is not exactly what already battered holders of gold needed to see. The year 2013 has been a year of non-stop hits to sentiment of anyone who owns gold. Major banks are telling people to sell gold as a “slam dunk” and that it’s headed down to $1050. It would be wise to remember that these same banks sold toxic Mortgage Backed Securities to their clients, knowing full well they were doomed, and then bet against their clients.
People who look at gold as a consideration for investment are concerned that it will continue to drop in price. I have personally spoken to numerous would-be gold investors who have told me that given the world economic situation, gold makes tremendous sense, yet they are unsure of an entry point.
However incredibly bearish the market sentiment is for gold, by taking the entire year into view, the picture starts to emerge of a massive base building for a move up, not a new bear market on gold. This secular bull market in gold started in 2001. Keeping in mind that secular bull markets in commodities can last as much as 20+ years, gold may have yet to give up its bull run.
Source Financial Sense