We stand at a moment in history which is characterized by the decline of Keneysian economics and a reminder globally that paper currencies are inherently worthless. As confidence continues to erode, central planners are looking for a fix, and finally we are seeing discussion in the mainstream media that we will have some form of a gold backed currency.

Although gold has pulled back off the highs, sentiment is anything but giddy among retail investors. Gold stocks have lagged the price of gold, and many quality juniors are trading for next to nothing.

Many professionals are looking for a correction or even a significant decline in the price of gold. Yes gold is extended, but bull markets can get overbought and stay overbought. What would make for an interesting summer is for gold and gold shares to take off to the upside catching many professionals by surprise.

Let’s not forget silver. Yes silver is about $2.50 from a hitting a new high in this secular bull market, but silver can move violently so that could happen quickly.

Consolidation is coming to the mining sector. Many quality juniors will be taken out by mid-tiers and majors. The interesting thing is that many less experienced investors are selling out of their juniors right before this consolidation takes place.

Remember that bull markets always surprise on the upside, so never give up your position. If you are afraid of your positions because you think gold will fall you have missed the point and probably will never make any money in the markets.

Buy and hold during secular bull markets and stop worrying about gyrations in price.

Eric King