A Gold Bug That's Still Undaunted

Adam over at Gold Versus Paper has this to say about this morning's gold plummet:

This is a normal and healthy correction that has begun in Gold. If you haven't been here before, Gold corrections are not for the faint of heart. This one's starting out sharp and nasty. I think the stock bear has awoken from his/her slumber. Gold is different than the stock market. Gold is not just an anti-dollar play. Gold is a safe currency that yields the exact same as U.S. T-Bills (i.e. zero) but without the built-in depreciation risk.

The rest of his post looks at corrections in late '05 and late '07, and estimates that the current drop could push gold down to around $1050 or so and take 1-2 weeks. This estimate is based upon the assumption that this drop will resemble the two previous corrections.