A gold tsunami coming, according to Richard Russell

By Prieur du Plessis, on April 29th, 2011 posted in: Gold, Investment 5 people had their say - chime in!

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I do not always agree with 86-year old Richard Russell, author of the Dow Theory Letters, but there is no disputing that he has been on the money with his gold recommendations ever since the low of $250 ten years ago. He believes a final explosive phase the yellow metal is approaching – a viewpoint I concur with. The paragraphs below are an excerpt from a recent report.

“We’re moving nearer and nearer to the edge of the hurricane. I can feel it in my bones. Every newspaper now carries an ad for gold. The ironic clincher was this ad below that I clipped from a weekly newspaper.

“Is there a gold bubble? Are you kidding me? Here’s an ad that somebody paid for suggesting that people should turn in their gold (!!) for Federal Reserve Notes. They’re not telling you to buy gold during one of the greatest bull markets in history – hardly, they’re asking you to throw parties in which the object is to get ignorant people to SELL their gold.

“I can feel them caressing my face – the early breezes. They are blowing gently and hinting of the forthcoming gold hurricane that will sweep across the US and the planet with all the force and power that was seen when gold was first discovered at Sutter’s Creek during the California gold rush of 1849. The gold rush of the 2000s is in the wings. The old phrase is ringing in my ears again (I haven’t heard it since the late ’70s): ‘There’s no fever like gold fever’.

“If the temperature of full gold fever is a hot 106, we’re only at 99 now, but I can feel it, I can tell you that the temperature is rising, rising.

“The panic to buy gold will override everything else. It will be one of the greatest financial phenomena that most of today’s investors will ever see. It will blot out everything else like a cloud blotting out the sun.

“After the calm, comes the storm. We’ve been watching ten years of gold climbing amid an atmosphere of calm. The great gold tsunami lies ahead. It will be historic.

“… BEFORE the great gold tsunami we might have a frightening gold correction that would clean out all the gold sceptics. This ‘clean out’ may be necessary prior to the big gold tsunami, and it’s a reason to hold some cash and not put ALL your money into gold at this time. Remember the old adage – ‘The market always does what it’s supposed to — BUT NEVER WHEN’.”

Source: Dow Theory Letters, April 21, 2011.

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