"This correction in precious metals is a normal occurrence in an ongoing bull market," says resource sector expert Curtis Hesler, who had correctly forecast the current setback.

In his Professional Timing Service, the advisor outlines his expectations for gold and silver prices and offers some favorite investment ideas in the sector.

"We are beginning to hear all sorts of bearish commodity talk from the media, as you always do when prices correct. But you must firmly understand that this commodity bull is not a 'bubble'; it will become a 'bubble' eventually, but not for some time yet.

"We will see more rallies and corrections along the path of this bull. Corrections are buying opportunities. We likely have a little more time in this gold correction before the next bull move begins, but prices look close to making lows soon.

"I have been forecasting $840-$825 in gold for some time, and we have seen prices as low as $850 basis August. I do believe the $850 level will be challenged, and this will trip sell stops just under that level. The result will be a final washout, taking prices into support at $840-$825.

"We are planning to buy StreetTracks Gold ETF (NYSE: GLD) after this expected weakness in gold. Your long term capital gains from ETF’s that invest in commodities will be taxed at 28% rather than the more advantageous 15% you will pay on stocks. Consequently, you might want to confine your investments in GLD to tax-deferred accounts.

"Another precious metal 'bullion fund' that I am adding to our list is Central Fund of Canada (ASE: CEF). It holds 98% of its assets in gold and silver bullion with approximately 50% in gold and 48% in
silver.

"Central Fund is not an ETF; it’s a closed-end mutual fund. As a closed-end mutual fund, CEF trades during the day like an ETF does, but long term gains are taxed at a minimum of 15% rather than 28%. CEF is a nice, easy way to invest directly in gold and silver bullion.

"The Central Fund of Canada holds close to a 50/50 split between gold and silver. I look for more weakness in silver as well as gold before the current correction is over. My long held downside expectation for silver is still $15.50 to $15.00 basis July.

"That may sound like a little too much, but silver is more volatile than gold and has formed minor support at $16.50-$16.00, under which lie a lot of sell stops. Once the stops get triggered, prices can easily fall another $1.00 to major support. The key is to buy into this weakness.

"In the silver sector, I particularly like Silver Wheaton (NYSE: SLW) and Silver Standard Resources
(NASDAQ:S SSRI). Once the precious metal correction is over, we will do very well with both of these silver producers."