RICHARD RUSSELL: The Gold Skyrocketing Phase Still Lies Ahead

TBI ^ | 11-24-2011 | Cullen Roche, Pragmatic Capitalism

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RICHARD RUSSELL: The Gold Skyrocketing Phase Still Lies Ahead

Cullen Roche, Pragmatic Capitalism
Nov. 24, 2011, 4:41 AM

Via Richard Russell’s Dow Theory Letters:

“Day after day, everyone asks whether gold has topped out. Nobody ever asks whether the market has topped out. Think about it, we’re in a low inflation, low investor fear environment, a dollar that appears to have bottomed and is now firming, and still gold holds above 1700 an ounce. This is a remarkable performance aided by heavy buying in China, India, and Asian nations. But what happens when we hit the inevitable inflation; when investors fears are on the rise? To conclude, gold is holding well in an environment that is not bullish for gold, but in due time, the environment will turn highly bullish for the yellow metal. Do not time your gold purchases. Simply continue to accumulate gold. The skyrocketing phase lies ahead, maybe one to three years.. “

Mr. Russell is in the hospital recovering from a broken hip, but going strong at 87. I wish him a speedy recovery….

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DR. COPPER: NO LONGER A LEADING INDICATOR?

24 November 2011
by Cullen Roche

Via Business Insider and Societe Generale:

“Doctor Copper is dead because copper prices will, in our view, not be leading the ongoing slowdown of the global economy. Investors who use the copper price as a leading indicator for the current business cycle downturn are likely to be disappointed as copper is likely to lag other leading indicators.
The reason for this is simple: the physical copper market is tight and has tightened further over recent months. The same is true for oil.
The physical crude oil market is extremely tight at present, which explains why crude oil prices have been very resilient despite the terrible newsflow coming out of Europe and fears of a global recession."

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“The physical crude oil market is extremely tight at present, which explains why crude oil prices have been very resilient despite the terrible newsflow coming out of Europe and fears of a global recession.”

I thought they have it on tankers all over the place trying to store the surplus?

[BipolarBob]

I thought they have it on tankers all over the place trying to store the surplus?

That is correct but let Israel drop one little nuclear device on Iran and supplies will tighten tighter that Lazs' hat band.