Gold bears won’t have the last laugh

By Matt Insley
The Daily Reckoning

Sometimes I wish charts could lie. Sadly, they don’t.

Gold fell through recent support at $1,550 last Friday and continued dropping yesterday — hitting a fresh two-year low below $1,350. Last time we saw prices this low was early 2011.

So, in order for us to save face next time we see the stereotypical, gold-hating jerk that we all have in our lives — and more importantly see how to gear our investment strategy going forward — let’s have a look at the recent action in metals…

Since Thursday, gold is off 12%, platinum is down 8% and silver had the worst 4-day stretch, off 15%. To put gold’s recent move in perspective, it still takes a back seat to 2011’s correction (-17%) and isn’t nearly as bad as the downdraft action we saw in 2008 (-25%.)

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