Richard Russell, author of the Dow Theory Letters, is sticking to his bearish call on stocks while reiterating his anti-Bernanke stance and his bullish view of gold.
However, what’s striking about this particular post is his latest post in King World News is his defence of gold that almost reads like apocalpytic poetry. He writes in King World News:
The result is that the sinking economy is actually producing signals ahead of the Fed, and Bernanke knows it, but cannot talk about it – it’s too frightening. Now Bernanke is playing for time. He’s hoping that somehow, some way, the US economy will not get worse and that it might even improve slightly. Bernanke is worrying about the Fed’s bulging balance sheet.
…But gold represents indestructible wealth. Gold rises in terms of fiat money, and gold declines in terms of fiat money.
Gold possesses some properties that are beyond the scope of other investments. Gold can’t go broke, because gold does not derive its purchasing power from the edict or control of any sovereign power or central bank. Gold has no counter-parties. Gold is tangible and is accepted everywhere — in good times or bad. Gold exists outside the world’s banking system. Unlike fiat money, gold is wealth on its own.
It’s tangible and not the fantasy-creation of central bankers. Gold does not need a sponsor or the acceptance of an expert (such as pricing a Picasso painting), because all gold is intrinsically the same. Gold does not tarnish nor does it degenerate — the gold in your watch may be the same gold that Cleopatra wore around her neck.
The supply of gold, unlike paper money, is limited. Alchemists have tried for centuries to turn other metals into gold — but have never succeeded. Gold is a beautiful metal on its own and the lust for gold seems to be built into the DNA of mankind. If you own 10 thousand ounces of gold, you can say that you will ALWAYS be wealthy.
He says “gold” 18 times in those four paragraphs.
Read more at KingWorldNews.com.