Last week was a tough one for gold and silver investors. Both metals saw significant corrections. This led some people to declare the gold bull market dead. But, as SchiffGold.com notes, historically, big corrections have been a normal feature of gold bull runs.

Last Tuesday, the price of gold dropped more than 5%, falling far below the $2,000 level. It was the worst single-day rout in seven years. Gold continued to fall in Asian trading Wednesday morning and briefly dropped below $1,900 before clawing back later in the session. Silver also had a precipitous fall, diving some 13%. A lot of people went into panic mode, but as Peter Schiff pointed out in his podcast the biggest daily moves in a gold bull market tend to be down.

What the market is doing is trying to flush out the weaker players. When it comes to a bear market, it's trying to create some hope and sucker people back into the market by having a really big rally. Well, in a bull market it's the opposite. The market is trying to instill fear in the weaker hands, so you get these spectacular one-day moves in the opposite direction of the primary trend to shake people out, to get the weaker players out of the market so you can clear away the excess baggage and then continue the trend."