The solution to the problem of "connecting all of the dots in gold investing" is quite simple ---- it is to ignore the dots. Gold is inherently volatile and trying to explain (or, even worse, trying to trade in and out of) every wiggle or ripple is futile and self-defeating. It is also a quick way to needlessly lose money.
So what if the POG goes down $8 in 1 or 2 days. The BIG picture is still intact --- we are in the early stages of a secular bull market in gold and economic weakness, inflation, mounting US indebtedness, etc., all support the trend for gold prices and stocks to climb over the next decade. What you ( and anyone interested in gold investing) should be doing is to use these dips and brief selloffs to slowly accumulate your position in gold stocks until you have your designated allotment (10-20%) within your portfolio. Then, just fuggeduhboutit. With gold, the trend is truly your friend. JMO.
