Late last year, Richard Russell made one of his last and most amazing predictions ever. Below is what the Godfather of newsletter writers had to say.
(King World News) – From legendary Richard Russell: “Americans are scared to death and befuddled by the news of the day. They are well aware that their own lives and jobs have little to do with the nonsense that the Fed and the government is shoveling out to them.
Early Stages Of A Historic, Primary Bear Market
I’m afraid that we’re in the early stages of a primary bear market. Each bear market has its method of attack…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 going to get it all 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. As the standard measures of wealth (stocks and bonds) have deteriorated, veteran investors have forgone profits and moved their assets into pure wealth.
I think the calm and easy part of this bear market has drawn to a close. We are moving into the high drama portion. Politically, I noticed a cartoon that tells a story. A hugely muscled and bare chested Putin is on the beach. Obama is sitting in the sand while Putin is kicking sand in Obama’s face. The question — how much sand will Obama eat?
Chinese And Indians Buying Gold In Huge Quantities
In the meantime, the story is that worried Chinese investors are dumping their stocks and buying gold in huge quantities. They are emulating the Indians, who are buying gold in huge quantities.
The year ahead is guaranteed to provide surprises and I sincerely hope that one of them will not be WWIII. I think Putin will push Obama as far as he can go, short of war. But mistakes happen, which is one reason why gold is creeping higher.
One Of Russell’s Last And Most Amazing Predictions Is Now UnfoldingI use $1,250 as the point of no return for gold. If gold betters $1,250 and stays there, I think we will have confirmation of a new bull market in gold. Gold demand from China, India, Russia and other nations continues to be enormous. Chinese imports through Hong Kong in August were more than double that of a year ago. And gold withdrawals to the Shanghai exchange have been huge.” King World News note: Fast forward to this year and gold took out the $1,250 price that Russell warned was the key on March 3rd. Well, here we are two months later with gold still trading close to the $1,250 level that Russell said was the key to launching the next leg higher in the secular bull market in gold.
If gold can remain above $1,250 that would trigger Russell’s bull market call for gold. This also explains why there has been such a fierce battle raging near the $1,250 zone, with commercials — i.e. bullion banks — now holding massive short positions in a desperate attempt to try to stop Russell’s prediction from unfolding.
All of this left me wondering, “How could Russell possibly have known that it would unfold this way?” Then I thought, “That’s why he was the greatest financial writer in history, the Godfather of newsletter writers, and there will never be anyone to replace him.”
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