Here is a pretty good explanation of how bull markets work.
Source: Gold Seek
by Peter Schiff
Over the past several days gold prices have plunged by over $60 per ounce and silver prices have dropped by close to $3 per ounce.Popular excuses for the carnage include lessening tensions in Iran, falling oil prices, and diminishing inflation fears.However, I am convinced that the decline has nothing to do with changes in the underlying fundamentals for either metal.In fact, with this week’s release of yet another record high monthly trade deficit and continued evidence of a rapidly deteriorating housing market, those fundamentals have never been better. How then do I explain the sharp recent declines?