With gold near $1,670 and silver above $31, today the Godfather of newsletter writers, Richard Russell, told his subscribers that gold and silver are now on the verge of accelerating. Russell also wrote about life during the Great Depression, where he sees key markets headed, and life’s hard lessons. Here is what Russell had to say: “Our perceptions of ourselves are formed in our infancy in our unconscious. They are formed by our early reactions to the way our parents treated us. This is one of the most important facts that I've ever learned. I grew up during the Great Depression.”
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By Kingworldnews
Richard Russell continues:
“Both of my parents had
unfortunate and frightening lives. Both my mom and dad had a parent die
when they (my parents) were young. On top of their personal tragedies,
they had to deal (in their 30s and 40s) with the worst depression in US
history. During the Depression, my dad had a nervous breakdown and was
unemployed for a while. My mom went to work at the US Census Bureau.
What did I learn from my
parents? I learned that all supplies, food, money, heat, good things,
are strictly limited. It was never revealed to me that God is the
unlimited source of all supply. I also learned from my frightened
parents that one must save for a “rainy day.” During the Great
Depression, many “good” companies went bankrupt.
Therefore, I grew up
believing that nothing, no stock, no real estate, nothing, was safe. My
father dared to own only two stocks during the Depression -- AT&T
and Woolworth's. Neither one ever skipped a dividend during the Great
Depression. After years of pondering, I concluded that the safest (with
least worry) item of wealth was gold. Gold is pure wealth, gold has no
counter-party, gold owes its value to no sovereign power -- therefore,
gold can never go bankrupt.
As for gold, below, it
continues to find support at its red 200-day moving average. Its first
upside target is to get over 1700. Getting above the blue declining
trendline would help. The full stochastics at the bottom of the chart
look bullish.
I believe that interest in
gold and silver is now on the verge of accelerating. At the speed it is
going, I now think the gold market will start to “catch on” with the US
public and potential buyers throughout the developed world.
The great Depression of the
1930s didn't materialize out of nowhere, the stock market told the
story far ahead of the Depression. If we are headed for a depression,
before it occurs, the Dow will first break below 10,356. A violation of
Dow 10,356 will be our initial signal of a forthcoming potential
disaster!
Here's where I am. I'm
worried about the future of the US because technically the US is
bankrupt (this based on the sheer amount of debt the nation has
accumulated as a ratio of debt-to-income). I want to be bullish, and I
want the best for the US and my kids. But I remain worried. Yet, the
stock market doesn't appear to be worried -- actually it remains bullish
with the Dow continuing to ascend. But will the Dow confirm the new
record highs in the Transportation Average?
Wait, a nation's currency
often tells us much about the world's assessment of the strength or
weakness of that nation. So saying, let's take a look at the US dollar
(actually Federal Reserve notes). Below we see a daily chart of the US
dollar. But, damn it, it looks to me as though the dollar is in a
head-and-shoulders formation with critical support at around 78-79. So
let's see whether the dollar holds support. If the dollar breaks down,
I'll surely be more worried than ever.
By Kingworldnews