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It's all just Jaw-Boning, Chatter & Gossip
Gold - Here's a daily chart of gold going back one year. Meanwhile, we're told that "gold is volatile" and "gold is dangerous" and "gold is overbought" and "gold is too expensive" and "when gold is over 900 dollars, jewelers can't sell gold jewelry." Again, it's all just jaw-boning, chatter, gossip.
Instead, let's do the simple thing. Let's see if gold can hold above its current rather steep bullish trendline. The trendline would allow gold to back off to 880 and still look good, actually look powerful. Of course, on any corrective action if gold can hold above 900 so much the better. Gold has been battling against the doubters and know-nothings for the last eight years. The great mass of Americans still prefer fiat paper currency to real money. But that will change somewhere ahead. When that changes, we'll call it the third phase of one of the greatest bull markets in history. We're not there yet, not by a long shot. Meanwhile, gold continues its silent war against "printed wealth."
Richard Russell 14 February 2008 The inimitable and venerable Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron's during the late-'50s through the '90s. Through Barron's and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-'66 bull market. And almost to the day he called the bottom of the great 1972-'74 bear market, and the beginning of the great bull market which started in December 1974. |
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