As the chaos in Washington and global markets continues, today KWN wanted to publish a portion of a powerful piece that was written by a 60-year market veteran. This piece was written earlier this year and it discussed what has US central planners truly terrified. What is fascinating is how timely the piece is today.
Richard Russell: “Bear market? Sure, back in the year 2000, for only 273 dollars you could buy one ounce of gold. But by 2012, you needed over 1600 dollars to buy the same one ounce of gold. The eternal value of gold doesn’t change. It’s the purchasing power of the Federal reserve note that has changed.
What is even more remarkable is the fact that most Americans have totally ignored (even despised) this remarkable bull market. Let a stock rise seven or eight years in a row, and it will be the talk of Wall Street and the talk of every social gathering in the nation.
Yet this amazing bull market in gold stands alone, sneered at and almost hated. I’ve been in this business for over 60 years, and I’ve never seen anything quite like it. However, I do think I know something about human nature. What I’ve learned about human nature is that it doesn’t change. For instance, if a stock creeps up year after year, sooner or later the crowd will discover it — and then they’ll pounce on it, ultimately sending that undiscovered stock far above its reasonable price.
My belief is that somewhere ahead, the crowd will latch on to gold. Then, as disinterested in gold as they are now, the crowd will pile into gold with the same frenzy that overtook the storied “49ers” when they packed their bags, kissed their wives and kids good bye, and headed West in search of gold.
Read the full article at KING WORLD NEWS