If You're Worried About Gold Prices, You Need to Read This

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When stocks fall by 20% or more from their peak, it's labeled as a "bear market."

With gold prices down 24.4% today from their record close back in August 2011, the "yellow metal" has entered a bear market of its own.

It took an especially ugly day last Monday to get us to that point, when gold prices plunged as much as 9.7% – the biggest decline since 1980. That continued a sell-off that saw the yellow metal fall by 4.7% the week before, including a 4.1% drop last Friday.

To get some expert insights on this sell-off, I telephoned Peter Krauth, our resident natural resources expert and editor of our Real Asset Returns research service. Peter based himself in Canada to be closer to the miners and natural-resources companies he covers for his subscribers.

I asked Peter for insights on the following three questions:

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About the Author

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

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