The recent plunge in the price of gold will be followed by a rebound, according to Al Korelin, the founder of A.B. Korelin & Associates.

Among the reasons for his view are Asian buying and the U.S. economy.

"Regardless of what the average guy in the street may or may not believe, the U.S. economy is in trouble right now," Korelin told Newsmax TV in an exclusive interview.

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Korelin also cited global turmoil.

"Look at the news that broke … about Egypt," he said. "The rebels — I guess they call themselves the rebels — they're the people who put the president in power, but they're calling for him to step down," he said.

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"They're [giving] him one day, 24 hours, to step down, and they claim if he doesn't there's going to be some problems in terms of civil disturbance. You couple that with Syria, you couple that with everything else, it's a great time to buy gold."

Korelin said investors must ask themselves "Why are you buying it?"

"Are you buying it as an insurance policy, which is the reason that my family has purchased gold," he said.

"Or, are you buying it because you're a short-term trader? I'm not smart enough to be a short-term trader. I can't compete with the big guys, so my wife and I buy gold and silver simply because we believe it's a good place to have a portion, not all of, but a portion of your portfolio."

Korelin doesn't see the price of gold falling to $1,000 an ounce.

"I absolutely don’t," he said. "I'm not saying that out of emotions. I'm saying that because fundamentals tell me that we're not going to see that happen."

When asked about silver, Korelin said the metal "also has an industrial component demand" that is also very important. "So people are equally well off buying either silver or gold."
Korelin was also asked about the effects of the Federal Reserve's program of quantitative easing.

"If quantitative easing isn't abated … and I don’t think it will be … that will probably be good for the stock market," he said. "It's going to be very good for precious metals. You can only print so much money."

Korelin wants investors to know that he believes in diversification.

"I really think there's money to be made in real estate right now, and there has been for quite some time," he said. "I really like hard assets and I like the securities involved in the hard-asset sector. I really like mining companies."

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