The charts below clearly indicate that the bull market correction in Gold and Silver Bullion and Gold Indexes, although quite painful, are typical corrections that have occurred on several occasions since the beginning of their bull markets that started in 2002. The silver correction is currently near 23% - 30% has been the extreme reaction lows since 2002 --- Gold has corrected by approximately 14% and its extreme correction lows has occurred when its price declined anywhere from 18 to 23%. The XAU gold index of senior producing gold companies is down approximately 27% with most reaction lows occurring near 30% and an extreme reaction lows in the 34 to 38% range.

Seasonal trends indicate a high probability that these markets will bottom out before the end of August, and since no one can pick an exact bottom, IMO, it is a good time to gradually add to positions or scale into new positions. See my previous email on seasonal trends 3.