Gold Bull Market Not Yet Manic

he "R-Man" is 85 years old and has been writing about the market since the 1950s. The reason he gives for the above statement is that the psychological pressure to lock in your gains when you face a rough patch is very strong. Few people have the strength of conviction to weather such tough times.
Gold has been acting very strongly. Depending on whether a gold bug or traditional financial writer is telling it, agreement is wide that we are due for a correction, minor or sharp. The more I hear that, the more convinced I am that the correction is further out, and will be smaller than we expect. Central banks are now holding back or even buying gold to replace their rotting dollar reserves. For years they've been dumping their gold to buy dollars. They've wised up.

There have been numerous gut-wrenching corrections on gold's journey in price from a low of $256 back in early 2001 through its recent run past $1,100, but gold has continued to rise inexorably. Each time it pulls back, the media give reasons why it was just a bubble and it's deflating. They're wrong.

Look at the strength in gold just this year.
Gold is simply the inverse of the dollar, which is worth less and less every year. The dollar has its short-term reversals, but that's all they are, just as gold's pullbacks are short-term corrections.