Skip to comments.RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging
Posted on 03/30/2012 10:10:51 PM PDT by blam
RICHARD RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging
Mar. 30, 2012, 8:23 PM
Richard Russell, writer of the Dow Theory Letters, is just looking for the right time to buy stocks.
But that time isn't now. And until that time comes, Russell will be keeping his wealth in gold.
He writes in King World News:
What I want to illustrate is that great fortunes are made at super-bear market lows. But you must have the money at the lows. Which is why gold is so singular and valuable. If you have gold at the bottom of the next bear market, you can exchange it for a collection of great common stocks or funds, and then sit back and relax.
You are then betting on the lasting power of the US. If the US comes back, you will be rich beyond your wildest dreams. But you have to have the guts to hang on to your gold. And you need patience -- the patience of ten men.
And when the time comes, things will get messy before they get good.
And I wonder -- is there a super bear market waiting for us somewhere in the future? The great ride from the end of WWII to today has never been fully corrected. Some day it will be. And impossible bargains in stocks will be lying around.
...My thinking is that sooner or later we will be subject to a major correction (bear market) that will wipe out or correct 60 years of inflation and leveraging. When that happens, I want to own the only kind of money that the Fed can't destroy.
Read Russell's entire commentary at KingWorldNews.com.
(Richard Russell: Hang On To Gold, Massive Collapse Coming)
(Excerpt) Read more at businessinsider.com ...
One heck of an adjustment.
i’ve said (for years now) the VIX has never since approached its 1987 highs. the “Greenspan Put” has become the “IMF Global Put.”
And when the market open again?
There’s always tomorrow and another 3900 points.
But doesn't that mean that the gold he is buying now at $1700/oz will only be worth $35/oz after 60 years of inflation are corrected?
This has been my plan for quite some time now. I figure a Dow of 2900 is the time to pull the buy trigger.
“The Gold Confiscation Of April 5, 1933
From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102
Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled
An Act to provide relief in the existing national emergency in banking, and for other purposes~’,
in which amendatory Act Congress declared that a serious emergency exists,
I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:”
and when the Fed confiscates your gold what you gonna do then ? friend.
Good old Richard, I’m glad to see he’s still working. Like all in his field he’s had his hits and misses, but he’s always interesting. I hope this is a miss.
But I’m short the S+P 500 (and hedged) in case he’s right.
“and when the Fed confiscates your gold what you gonna do then ? friend.”
Let ‘em try. Too many people now have gold, and guns.
The knowledge that the market can close early and stay closed makes sell offs worse.
If all that really were to happen... You can’t eat gold...
The Elliott Wave has never been wrong.
I don’t think so. Most of the gold are held by central banks, very few by individuals. 1930’s was different. Gold was in US coins and US issued certificates that one can redeem in gold. FDR did not want the gold to leave the US during depression thus he had it removed from money, and individuals who owned it in US coins, certificates or bullion bars had to turn it in for the new dollars we still use today. Since we are off the gold standard, there is no monetary value in confiscating privately owned gold. If we go back to the gold standard, the US currency will be reset. Those in debt will be impoverished, those who hold hard assets will have their wealth preserved.
ShadowStat’s take on when the wheels are coming off...
So having gold in stocks is not good?
If one reads the mail of Goldman Sach in the late 1920’s and e-mails in 2007 in both cases they were pushing junk on their cleints.
But doesn't that mean that $35 will be worth $1700?
Mr. Smith, a previously obscure executive who ran Goldman Sachss United States equity derivatives business in Europe, the Middle East and Africa, burst onto the public scene in a widely read Op-Ed article in The New York Times on March 14. In the article, he described derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. Its purely about how we can make the most possible money off of them.
Let em try. Too many people now have gold, and guns.
You are worried about your gold while the IRS, state and local taxing authorities are robbing you blind? Gold is simply “icing on the cake” for them.
we are nearly to 25 posts and still no boasts about lead and brass holdings
Something must be afoot
You are correct, but in the narrow context of gold confiscation my point was that people would not go along with it like they did in 1933.
Bob Prechter issued a buy call the morning of October 19, 1987. Still makes me laugh.
"Something must be afoot"