Richard RUSSELL Says Buy Gold: THIS IS ONE OF THE LARGEST TOPS IN STOCK MARKET HISTORY (GLD, SGOL, IAU)
“We’re now in the process of building one of the largest tops in stock market history. The result, I think, will be the most disastrous bear market since the ‘30s, and maybe worse. Question: “What could possibly be behind such a bear market?” you ask. “The stock market is stirring up optimism on a weekly, if not daily basis, by not falling apart.” Answer: This is the “rest” or “dead zone” I was talking about. Bear markets don’t conclude in a day, a week or a month. Months will go by, often adding to the bulls’ optimism.
I think the key element behind this great bear market will be the complete destruction of all fiat currencies. This has been a long time coming. Fiat currencies are “wealth” created by man. They are created without sacrifice, without labor, without risk, and without sweat. Basically they are an immoral device, created by secretive bankers.
Gold: As for gold, its stellar performance goes on. This in the face of ominous warnings of various worried experts. On Friday, August gold rose to a new record high. The next step will be into the 1300s — point&figure upside objective is now 1310.
Gold shares are lagging bullion in this last move, not yet showing the break-out seen in the yellow metal.
The world (minus the US) is loading up with the yellow metal with banks running out of vault space. The great 10-year primary bull market is moving into its 11th year. The bull market in gold attests to the systematic decline in the value of the dollar compared with real money – gold.
One of the greatest modern traders, John Paulson, who made billions on the housing collapse, has, I understand, all his personal money in gold-related items. Many of my subscribers have now built gold profits beyond anything they have ever achieved before. I know at this point one could get itchy fingers thinking of the profits achievable by switching gold for fiat currency. I warn subscribers, stay on the yellow brick road. The big profits, the astounding profits, will accrue when gold finally bursts loose of its prejudices and freely expresses itself.
My advice now is to put as much of your money as you’re comfortable with in bullion coins. Remember the simple phrase that’s been around through years of history – “There’s no fever like gold fever.” Fiat money is doomed. Act on it.”
Source: Dow Theory Letters
Gold ETF Options:
(GLD) SPDR Gold Trust
The investment seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.
(IAU) iShares COMEX Gold Trust
The objective of the trust is for the value of its shares to reflect, at any given time, the price of gold owned by the trust at that time, less the trust’s expenses and liabilities. The trust is not actively managed. It receives gold deposited with it in exchange for the creation of baskets of iShares, sells gold as necessary to cover the trust’s liabilities, and delivers gold in exchange for baskets of iShares surrendered to it for redemption. The trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act.
(DGL) PowerShares DB Gold Fund
The investment seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return. The index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.
(SGOL) ETFS Physical Swiss Gold Shares
ETFS Physical Swiss Gold Shares (SGOL) is designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. SGOL is intended to provide investors with a return equivalent to movements in the gold spot price less fees.
(UBG) UBS E-TRACS CMCI Gold Total Return
The investment seeks to track the price and performance yield, before fees and expenses, of the UBS Bloomberg CMCI Gold Total Return index. The fund is designed to be representative of the entire liquid forward curve of the gold contracts. The index measures the collateralized returns from a basket of gold futures contracts. It is comprised of the gold futures contracts included in the CMCI with five target maturities.
Related: Schiff Wants A Gold Standard
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