As of yesterday, gold has fallen to its lowest level in 4 months - to $1,318.40  an ounce.

The last time gold traded this low was on October 4th when the price of gold was $1,316.80.

That's a correction of 7% so far this year.

I know that seems like a big drop but let's put things into perspective:

Gold gained 30% in 2010.

In 2009, gold gained 25%

Over the past 10 years, gold has gained over 400% and has never had a losing year during this period.

The current 7% correction is just a tiny blip on the radar!

The reason experts are giving for the current correction is that gold investors seem to feel at the current time that inflation is not an issue.

However, after the FOMC meeting on Wednesday, we learned that interest rates are going to stay at these record low levels, as they have been since December 2008, for an "extended period" of time.  And maintain that $600 billion dollar treasury securities  buyback program.

Current events can easily move gold prices up or down on a day to day basis and over a short-term period.

However, when you are investing in gold, you should build your portfolio with a longer-term,  economic view of  1-3 years.  Smart investors look at short-term corrections in the price of gold as a buying opportunity! Corrections allow you to add to your gold allocation at a lower price and to acquire more ounces for the same amount of money!

If you have been waiting for a correction in the price of gold to buy, this could be the ideal time to do so.

Recommended Gold Products

1 oz. 2011 Gold American Eagle
Its stately appearance and proud symbolism make the Gold American Eagle one of the world’s most popular investment-grade coins. Add this coin to your portfolio today.

France 20 Franc Rooster Gold Coins
These beautiful French Gold coins contain .1867 ounces of Gold and are priced under $300 (at current market). These coins give you diversification and a double opportunity for increased value with both a position in Gold and a coin with a collectible demand.