Buyer's Market for Gold?

I hate to say it but I absolutely love it when gold drops this much - it's like a black Friday sale!

A lot of red across the board today. The Dow dropped 163 points, the Nasdaq lost 35, S&P 500 down 19 and gold fell over $47/ounce to $1,669/ounce, hitting a lowest ever in 7 weeks. Yikes!

But listen: if there's anything that any of us investors can possibly learn from the "Oracle" of investing, Warren Buffet, it's that prices falling signals a buyers' market to obtain gold at more affordable prices! As of the time of this writing, gold has seen its lowest price in 7 weeks. My personal translation for that is that if I've been waiting 7 weeks for a 'sale' on gold, then this is it!

After news of the Eurozone summit late last week, many investors expected somewhat of a rally for gold today, but the truth of the matter is that it was too little too late. Also, any hint of stability that came out of last Friday's Eurozone announcements were completely undermined by that last bit of news on the ECB's strongly stated disinterest in buying bonds. This 'more bad than good' news took investors some time to realize - 2 days to be precise. So with a record low in 7 weeks, we have new support at the $1,660 level and many salivating smart-shoppers will be waiting for the opportunity to lock in a price near that.

I personally am going to see if gold indeed breaks through that support level. If not, I've got some shopping to do. But if gold does indeed fall below $1,660, then I'm going to be looking towards the next support level that was set in mid-October near $1,620 - and I'll have my wallet ready still. This week should prove rather interesting, especially for those observers leaning on the technical side of gold price movements...

Be safe, be wealthy and above all else, be happy.

- Mitch