VANCOUVER, BC -- Metals and the mining stocks have just experienced a sharp correction to the downside in the past few days and weeks. What does this mean?

After hitting new highs in recent months many of the spot prices and mining shares have corrected 15%, 20%, 25% or more. But this is to be expected and planned for.

You see, this is just how these markets operate. And as I have said in the past the volatility moving forward will get worse not better. We have experienced the upside volatility and now we are experiencing the downside volatility.

As this bull market in the precious and base metals continues, I expect the volatility to get worse, but the trend remains to the upside.

This market is not for the faint of heart, and you need to understand what you are doing to weather these kinds of storms

What that means for investors is that they need not panic and begin selling at such a critical time, but look at this correction period as the time to pick up great values in many of our good companies.

This market will rebound with an even bigger roar to the upside. So just bide your time right now and relax.

This is where many investors lose perspective and exit at the worst possible time. But hang in there and look for good buys in the next few weeks and months.

I have no crystal ball to say how long this will last, but my opinion is that by the early fall or sooner we will once again be running to new highs both in the spot prices and mining shares.

What I have found in investing over the years is that it is very hard to train oneself to buy when everyone is selling and sell when everyone is buying.

We are clearly seeing a moment where the crowd is in panic mode and selling. This is where you need to learn to separate yourself from the crowd and have confidence in what you are doing.

There is a great quote that I think applies here and it goes like this: "At certain times the market always returns the capital to its rightful owners."

What this is saying is that money will always flow or return to the people who don't panic. The ones who panic will be the losers and the ones who don't will ultimately be the winners.

There is nothing happening in any market that would justify lower spot prices in any of the commodities markets or share prices long term. This is just another short-term correction providing perhaps one of the last great buying opportunities in the metals and the mining shares.

I still believe we are going to push for $900 gold and $20 silver before the year is out. The fundamentals all point to much higher prices in the longer term, which I define at this point as six months to two years.

I am writing this from Vancouver shortly after attending the recent conference sponsored by Cambridge House. The attendance was off from what we saw in Vancouver in January of this year, but the consensus opinion from all the speakers including myself was to just be patient for now, and watch for some great buys.

Bottom line: Try to relax and look for companies that represent great value. Now is the time to be a buyer not a seller!

- Greg McCoach

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