With historic events taking place around the globe, today the Godfather of newsletter writers, 90-year old Richard Russell, asks what the hell is going on with the U.S. gold hoard?  The 60-year market veteran also asks the all-important question, “Why is our government hiding the real story on U.S. gold?”

King World News note:  Since it is Thanksgiving in the U.S. we are featuring Richard Russell once again because he is the the Godfather of newsletter writers and the oldest and most legendary financial writer in the world.

Russell:  “As you know, the central banks of the world are fighting deflationary forces through degrading their various currencies. Nobody, it seems, can escape the damaging forces of world deleveraging and deflating. According to reports put out by the labor department and the Fed, the US economy is the lone success in a world being fragmented by deflation. As all currencies decline, the world’s investors turn to the US and its dollar as safe havens. Just as there are questions about the strength of the US economy, there are questions about the gold status of the US. According to the World Gold Council, the US possesses the greatest hoard of gold of any of the hundred nations. Furthermore, 72% of the US monetary reserves are in gold.

What should we believe? Who should we believe? It’s ridiculous that we can’t get straight answers from the government about the holdings of US gold. After all, it’s our government and it’s our gold. The great mystery — why doesn’t the President, the Fed or Congress give us the answer to the great gold mystery? I’ve heard rumors about our gold, or lack of gold, for years. How in the hell can we get the truth? An attempt to get an audit on gold was turned down by the Senate. Why doesn’t our imperial president demand an answer on the US gold position? Why is our government hiding the real story on US gold?


This is Thanksgiving week and half the nation appears to be on the road. San Diego is an amazing area. Half an hour from my home, I can be up in the Laguna Mountains sledding and throwing snowballs. An hour from my home, I can be in the desert taking pictures of cacti and flowers. Five minutes from my home, I can be on the beach swimming in 65 degree water. And as I look at the board, Gold is selling at 1197.7. At the same time, the Dow Jones Industrials and Transports are down around 10 points each. So it’s a good day if you’re in the stock market — and it’s a bad day if you’re a turkey. Both the S&P and NASDAQ are higher. I continue to like the action of WR Berkley (WRB). Although overbought, this stock evidently refuses to back off. Thus, if you like it, you must buy it here. 

GLD as I write is down 0.24 along with most of the gold mining issues. The news of the economy appears bullish but John Williams of Shadow Statistics reports, “No economic boom in durable goods orders or housing activity. Real durable goods orders set early pace of flat-to-down activity for fourth Quarter 2014. New-home sales revised lower in third-quarter, October broad sales activity remained stagnant. Consumer confidence and sentiment remain at levels consistent with historical recessions.” So is the data coming out from the government and the Fed correct? Or is John Williams correct?

Plunging oil prices down to 74 dollars a barrel seem to have minimal effect on the price of gold bullion. The bullish break-out point for gold is 1204. It’s amazing to me how gold — the money treasured by our founding fathers, can now be so hated. I guess that if people hear the same opinion put forward by government often enough, they will believe it. On top of this, speculators short paper gold on the exchanges, driving the price without ever owning an ounce of physical gold.”

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

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IMPORTANT – KWN has many more interviews being released today.

The audio interviews with Bill Fleckenstein, Ben Davies, Greyerz-Turk-Stamm, Gerald Celente, David Stockman, William Kaye, Dr. Paul Craig Roberts, Andrew Maguire, Eric Sprott, Rick Santelli, Michael Pento, John Mauldin and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.

Eric King