With continued uncertainty in global markets, the Godfather of newsletter writers, 91-year-old Richard Russell, warned that countries are now preparing for a collapse in global fiat currencies and panic buying of physical gold.

King World News - Bill Fleckenstein - China's Gold Accumulation And Their Plans For The Yuan, Stocks Struggle, Plus A Bonus Q&A

October 16 (King World News) – Richard Russell:  “The word out of China is that China is selling massive quantities of US Treasury bonds. At the same time China has been a huge buyer of gold. My thought is that China wants to back the yuan with gold and thus the yuan will be the world’s only gold-backed currency.

Countries Preparing For A Collapse In Global Fiat Currencies

In this way, China wants to be on an economic par with the US. Russia is also buying physical gold, as are most of the central banks. They may be preparing for a collapse in fiat currencies. I advise my subscribers to buy as much bullion gold as they can. It seems that the central banks don’t trust the garbage money that they themselves have created.

Many veterans are now afraid to store money with banks or even with the government. They are buying small quantities of silver and gold because these items always represent wealth and will not decline in the bear market.

My recommendation is cash, precious metals, and patience as we await what I think will be a full blown primary bear market. If you have cash, sit with it until the end of the year when we know more about what’s happening in China and Russia and Syria.

King World News - Richard Russell Warns Countries Are Now Preparing For A Collapse In Global Fiat Currencies And Panic Buying Of Gold

Expect A Waterfall Decline In Stocks And Panic Buying Of Gold

This bear market (and I’m calling it one) has developed a case of internal erosion. Stocks are falling apart one by one as the big averages mask the damage. Bear markets are sneaky beasts and they like to do their damage as secretly and as unobtrusively as possible. I hate to say it, but somewhere ahead the bears are going to get together and the innocent little stream is going to turn into a waterfall.

What can you do about it? Stay out of the market. Protect yourself by remaining in pure wealth, gold. For thousands of years, silver and gold have been treated as pure wealth.

I think it (gold) will soon rally above the big resistance of 1200. Once above 1200, I think we will see Gold riding the UP escalator in a combination of short covering and panicky buying.” ***KWN will be releasing interviews all day today and this weekend, including audio interviews.  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.

***KWN has now released the incredible audio interview with Michael Belkin, the man who advises the most prominent sovereign wealth funds, hedge funds, and institutional funds in the world. Belkin covers the historic rally he expects in gold and the mining shares as well as what he expects to see in global markets for the rest of 2015, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

***ALSO JUST RELEASED:  The $200 Trillion Disaster And Serious Economic Repercussions CLICK HERE.

KWN Belkin mp3 10:10:2015

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