Russell continues:

“Gold, on a trend basis, has outperformed the Dow ever since 2002 or for eight years. On top of that, the trend of gold has been clearer and more definitive than the trend of the Dow.

Finally, I like the long-term fundamentals of gold better than I like the long-term fundamentals for the Dow. The Dow is denominated in dollars, and frankly, I'm very concerned about the future of the dollar.

The actual number of dollars has been expanding, year after year, and dollar creation has even been accelerating recently. The more dollars being created, the less the dollar will be worth in purchasing power.

And that, in a nutshell, is the reason I like gold. The fight against deflation is bashing the dollar, and if it continues it will literally kill the dollar.

The story, against the Fed's wishes, has just been released (front page of today's NY Times). During the worst of 2008 the Fed loaned dollars to everyone everywhere --, corporations, banks, small businesses, Goldman Sachs, Bank of America, GM, and even overseas companies. Trillions of dollars were distributed literally anywhere and everywhere.

Question -- at some point, won't the Fed and the administration ‘give it up’ and take the pain of deflation? Answer -- I absolutely don't see that happening. You're talking about the US accepting Great Depression number two.”

Diamonds Attract Funds as Largest Gem Prices Surge 76% in Year

July 15 (Bloomberg) -- Diamonds, like art, are a commodity that is gaining attention as an alternative investment.

...................................................

“As I see it, the future is a continual decline in the purchasing power of fiat money. Our protection is to buy and own items of intrinsic value, items outside the insidious ‘paper money system.’

Jack LaLanne, the famous health expert said of food, ‘If man made it, spit it out.’

I can apply the same philosophy to money. ‘If man made it, get rid of it -- spit it out.’

Real wealth will stand the toughest test of all. The test of time. Was it wealth a thousand years ago, three thousand years ago, one hundred years ago? Is it still wealth today? And the answer is that there is one item that has withstood the test of time -- gold.

Russell Comment -- I believe a second item is coming into the same class. I'm talking about diamonds, which are becoming scarcer as the years go by (diamond production is declining every year, and the price of gem-quality diamonds is booming).”

To subscribe to Richard Russell’s Dow Theory Letters CLICK HERE.

Richard Russell knows where the bull market is right now - hard assets.  During these cycles it is stunning to see how the vast majority of all human beings have their savings slowly and meticulously destroyed by governments through inflation.  Governments use the mainstream media to keep their citizens out of hard assets during these cycles as they inflate. 

As opposed to the mainstream media, King World News will continue telling the truth to its global audience, so readers and listeners can protect themselves and their families from the insidious theft of fiat currency debasement.  This debasement is meant to rob the citizens of their hard earned savings.

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value...The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.  This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.” Alan Greenspan, 1966

Eric King

KingWorldNews.com

To return to BLOG click here.

next >

< previous

Contact Us:

KWN Disclaimer: