As people continue to digest breaking news out of Greece and around the world, the Godfather of newsletter writers, 90-year-old Richard Russell, said Chinese gold reserves will be shocking, and Fred Hickey says the bull market in gold will resume and end in a mania.
Richard Russell: "The following is from Fred Hickey, courtesy of Investment Rarities:
"Historically, the best place to protect ones wealth in a period of massive monetary debasement has been in precious metals, and once again, I’m perplexed that it’s taking so long for other (Western) investors to concur. After going gaga over precious metals into the top in 2011, the selloff has temporarily cooled their ardor. Eastern investors (Indians, Chinese, Russians, Middle-Easterns and Turks) continue to buy and hoard enormous amounts of metal. They’re no dopes. They remember history.
While it’s clear to them and to me what I need to do, the fact is that I’m back in a waiting mode, which seems to be more interminable with each passing day. The boo-birds are back. On Sunday someone left a phone message: “When are you going to admit you’re wrong” and give up? I hear similar criticism on my Twitter feed.
My answer is always the same: I’ll admit I am wrong when the Fed is able to normalize interest rates and normalize (sharply reduce) their bloated balance sheet without blowing up the world. In other words, I’ll admit that I’m wrong when these central bankers prove, for the first time in history, that money printing works.
After six and a half years of abject failure, where they’re afraid of raising interest rates even one quarter of one percent, never mind bringing them to a normal level, it’s the central bankers (and everyone else who still believes in them) who need to conclude that they’re on the wrong path. I’ve only been wrong in my estimation of how long the Fed would continue to fool so many investors for so long a time. I still believe that all this will lead to the resumption of the secular bull market for precious metals, and eventually the final blow-off top."
Russell comment: it should not be long before we hear about Chinese gold reserves, which I personally believe will be huge and shocking.
Just before the close the close, the Dow is up 246 points and back above the 18,000 level. Confirming the Dow in direction, Transports are up 60 and well above the big even number of 8,000. The Nasdaq is up 69 and well above the even number of 5,000. Gold is up to 8.3 to 1185.9 and silver is up 2 cents to 15.98.
From what I hear, every central bank is buying gold as a hedge against an overpriced and over-loved dollar." I would urge all KWN readers around the world to subscribe to Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***ALSO JUST RELEASED: An Astonishing View Of The War In The Gold, Silver And U.S. Dollar Markets CLICK HERE.
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