The latecomers to the gold bull market have been feeling the heat the last couple of days. After reaching a record high of $1,540 an ounce only seven business days ago (on May 3), the price of gold bullion has fallen $55.00 to $1,485.

But it’s not the price of gold bullion that has investors and speculators worried. After all, the price of bullion is up $252.70 an ounce, or 20.5%, over the past 12 months. The fear and concern lies with the price action of the gold stocks.As a reader e-mailed us yesterday, “Michael, I enjoy reading PROFIT CONFIDENTIAL each day and appreciate your wise advice. I have been invested in gold stocks for the past four years and have done reasonably well…but am perplexed at the recent performance of stocks in relation to the metal price. (Gold) stocks are standing pat when gold is rising and selling off when gold declines.”

I’m sure the majority of my readers invested in gold are noticing the same thing as the above reader. But, in a bull market, this is what separates the men from the boys. The latecomers to the gold bull market (the “boys”) are dumping their gold stocks as fear sets in over weakness in the yellow metal. The seasoned gold investors (the “men”) see gold stocks forming a solid base here. The men are buying the gold stocks on dips, not selling them. The gold bull market is 10 years old. It’s not a market for trading. It is a market for seizing the trend and staying with it. During this bull market, there have been times when gold stocks have led the advance higher before gold bullion and there have been times when gold bullion has led gold stocks higher (which is where we are now).

Nothing has changed in the world to change my view on gold. The Fed hasn’t stopped the printing press. The government hasn’t reined in its reckless spending. Long-term interest rates haven’t come down; neither has inflation. Everyone has an opinion, a belief. Personally, I see the weakness in the price of gold stocks as an opportunity. And that’s why I’m buying more of them today.