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Gold In Long-Term Bear Market?

Gold stocks fell 11% last week, resulting in a 32% rise in DUST. Gold stocks are now down 57% from their peak on September 5, 2011 while gold itself is down only 23%. DUST has doubled in just 3 weeks.

I believe gold is in a long-term bear market, since Cyprus is being told to sell $400 million in gold. This has already spurred other sales. So, I recommend against buying the metal. This article on expresses the same opinion. However, the buying on Friday was heavy, showing some good short-term support for a short-term bounce.

However, I think that gold stocks have probably felt their worst.

Disclosure: I am short DUST.

Additional disclosure: I am accumulating gold on draw-downs.