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Richard Russell - “There’s No Fever Like Gold Fever”
In Richard Russell’s commentary this week, the Godfather of newsletter writers stated, “This great gold bull market is something that one sees maybe once or twice in a lifetime.” Russell also lays out the roadmap of exactly where we are today in this three stage bull market. He also explains the ongoing destruction of the dollar and what people need to do to protect themselves. Here are a few snippets from this week’s commentary...
September 17, 2010
Richard Russell:
This great gold bull market is something that one sees maybe once or twice in a lifetime. I want to congratulate those of my subscribers who had the confidence and guts to ride the great gold bull market with me.
I've said before that we've already gone through the first psychological phase of the gold bull market, and that we're now deep in the second (usually the longest) phase of a bull market. If my instincts are correct, the third speculative phase in gold lies somewhere ahead. Forget timing for the third phase, it doesn't matter -- somewhere ahead new comers will know the meaning of the phrase, "THERE'S NO FEVER LIKE GOLD FEVER." Often during the third phase, the item makes more for investors than all their profits through the first and second phase.
When the primary bear market started, I said that the primary trend will have its way no matter what, and that the best strategy was to leave it alone and let it fully express itself. "No, no," insisted Bernanke and the administration, "We know how to circumvent a severe recession or another great depression, we'll spend our way out of it."
The result -- the Bernanke Fed and the Obama administration (Keynesian advisors Summers and Geithner) are destroying their own fiat dollar. In the end, they'll have done much more damage than another great depression would have done.
Those who claim that we're in a new bull market don't understand what is actually happening. We're in a subtle bear market in purchasing power as our currency goes down the drain. And what if the dollar loses its reserve status and nobody will accept the fiat paper that we grind out? Talk about trouble, we haven't seen trouble yet.
In the face of the destruction-of-the-dollar path that the Fed and the Obama administration have followed, the best way to save our purchasing power is by owning the only true "safe-haven" currency, and that currency is gold.
Like Russell, I hope his subscribers have listened to him since he identified the gold bull from the beginning, and was pushing his subscribers hard to enter gold from those early moments.
Investors must protect themselves but the question some may be asking is what do I do now that the metals are running? Don’t worry about that, just dollar cost average and purchase gold and silver each month, that way you will get an average net price over time which also removes the emotions from the decision making process.
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Eric King
