I woke up last night, and realized that the facts have changed drastically, and it was high time for me to change my stance, and my opinions, and I mean change them across the board.
I believe we are in a period of world deflation and deleveraging. Why kid myself, gold after eleven years of successively higher year-end figures, has lapsed into a bear market. The huge rise from 200 to 1900 has never been corrected, and the rise is over. We are now seeing a correction of the entire gold bull market. To make it more dramatic, neither the public nor the funds have been participants in the gold bull market, and they are smarting and angry at having missed out on the greatest bull market of the postwar period. Thus, they are publicly gloating and gleeful as the dollar price of gold sinks.
The new "bargain" price of gold is giving China and Russia exactly what they want -- large, available quantities of "cheap" gold. The movement of huge quantities of gold from West to East is not comforting to Richard Russell. History tells us that gold and international power move hand-in-hand together. Basically, large quantities of gold are moving from the US, Britain and Europe to China, Russia and Asia. The implications of this massive transfer of wealth are not pleasant to contemplate, at least from what I know about history.
No comments:
Post a Comment