Buying Gold on this Decline (CEF, GDX)

On Tuesday, gold dropped over $40 and silver went under $10. They reached my target prices and I duly picked up some Central Fund of Canada (CEF) at $7.80. There are too many "advisors" that gave targets for gold at $630-650 when the decline started and now that things look bad they move their targets down further.

Recall that on the way up, there was a race to see who can have a higher target price. Well, all the reason to do my own thinking and I urge you to do the same. At any rate, I figured this was a pretty low risk entry point. As usual, I consider CEF and physical bullion long term holds.

I also put in some low-ball bids on some miners as the HUI went below my 1st target of 280. The gold stocks are going down with the general market so there may still be some more downside to come, especially since margin selling should start soon. I'm still undecided as how to play the "B" leg, so I try to be a little more precise with entry points. Since I'm looking for a big reversal in the middle of next week, I'll try to finish my bottom fishing by then.