As people continue to digest breaking news out of Greece and around the world, the Godfather of newsletter writers, 90-year-old Richard Russell, warned that big money is preparing for a devastating worldwide collapse.  He also discusses what this will mean for major markets.

Richard Russell:  "The most important lesson in investing is never to sustain a big loss. With this in mind, I have and still do advise my subscribers to be out of all common stocks except for gold shares, and to be positioned in silver and gold bullion, holding the actual metals in a safe place. I also like the Central fund of Canada, CEF, which holds actual silver and gold in what I consider a safe place — Canada.

KWN Pento II 4:12:2015

Bull Market Top?

I have gone over the usual and even unusual methods which warn of a major bull market top. I could list them all, but that would take half a page of concentrated writing.

I know that all bull markets must end or go to the sky, and this bull market will not rise to the sky. I conclude that there must be a massive foolery coming up, something that current advisors do not know about.

KWN Fleckenstein II 2:8:2015

Bear Market Will Be Massive

Yet I know that bear markets cause losses, and the question on my mind is … how will the next bear market create losses? I have only two theories; first, the market will decline in a jagged see-saw pattern, a pattern that creates no fear. The market drops ten percent and analysts declare that this is the long awaited and long expected ten percent correction.

But the general market continues to decline, and investors remain in the market waiting for the inevitable rally that will conclude the correction. No rally comes, and stocks continue to decline, suddenly there is a realization that this is no correction but a bear market, and down goes the bear, taking billion of shares with him.

The other scenario that I envision is one day, with no previous warning, the market drops and a huge gap, over a thousand points in the Dow opens. The authorities close the exchange for three days and when the market opens, it gaps down again. When the market finally opens again, thousands of stocks open well below their previous closes and a bear market is on.

Thus, this bull market continues while lacking all the conventional signs of a top. My advice to my beloved subscribers is that at this point, the potential loss outweighs the possible reward. The odds of a loss outweighs the possibility that this bull market could rise to the sky.

King World News - Prestigious Firm Successfully Forecasting Markets For 60 Years Just Issued A MAJOR ALERT On The Gold And Silver Space

Gold And Silver Are Key

One last thought, being on the sidelines with silver and gold gives me peace of mind, a psychological calm that no amount of money can buy.

King World News - Richard Russell - Big Money Is Preparing For A Massive Global Panic And Collapse

Big Money Is Preparing For A Devastating Worldwide Collapse

Speaking of panic, the auction prices for outstanding art and jewelry are up and off the charts. I just reviewed prices from Sotheby’s and Christie’s and items selling for over $100 million are not uncommon. Big money is paying close to this much for portable tangibles. Along with auction prices, amounts paid for select New York real estate are almost incomprehensible.

I ask myself why billionaires are willing to pay seemingly insane prices for outstanding tangibles such as Picassos and classic cars. They are preparing for the collapse of currencies and the days when rare tangible items will be a form of money. You can subscribe to Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.

***ALSO JUST RELEASED: Western Propaganda, Gold, Silver And China's Move Toward Supreme Global Dominance CLICK HERE.

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The audio interviews with Dr. Paul Craig Roberts, Andrew Maguire, James Turk, Rick Rule, Bill Fleckenstein, Dr. Philippa Malmgren, Egon von Greyerz, Eric Sprott, Robert Arnott, Gerald Celente, Michael Pento, David Stockman, Marc Faber, Felix Zulauf, John Mauldin, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.

Eric King