With continued chaos and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, is warning that the Fed and the US government are bombarding US citizens with a never-ending parade of lies as the world remains caught in the throes of a severe depression. He also discussed what is happening in the gold market.
Russell: “An hour before the close (on Friday), the Dow was up 120 points, with substantially less volume. This told me that institutions were selling into the rally. The Dow closed slightly off its high. I call this a poor day, accented by institutional selling. Gold had its best day since last August, closing at a new high for the move.
I think gold is overbought now, with many Johnny-come-latelies belatedly advising positions in gold. Today there was a full-page ad in the New York Times advertising “bargain gold.” This too suggested that gold, after its excellent rally, is now overdue for a rest.
In the big picture, I continue to believe that we’re in a world depression. This will be followed by frantic activity by the Fed, as it prints new trillions of dollars. Which I’m certain, by the way, is why gold ...