The set of circumstances that drove gold to $1900 and silver to $49 have not changed; only the perception of the facts has changed.

We saw all the gold products trade down significantly, but one thing that did not trade down was gold coins, tangible, real gold,” he said.

The silver market looks poised to repeat the 170% gain logged over the seven-month period between April-November 2011.

Spurred by a sudden drop in prices, Asians in the last two weeks have gone on a gold-buying binge

Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce.

With every drop in the price of gold (and silver, too), individuals are buying as much of the precious metal as they can.

There are reports of very strong demand for coins and bars from buyers internationally who believe that the sell off that saw gold fall to a two-year low is overdone.

“I think there is a big shift and central banks will continue to increase their exposure to gold. They love it when you get these corrections,” he said.

In gold, “what we now see is panic selling, perhaps triggered by the Fed’s stimulus view.

However, the potential catalysts for a return to a full blown financial crisis are far from passed and gold may yet shine again.