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Is now a good time to put some wealth into gold coins?

*Dow Theory Letters, Richard Russell, June 8, 2007

“By now, everybody is probably worrying about gold. “Is this it?” “Is gold going out of style?” “Have the central banks won the battle against gold?” Time for a little perspective and what better than a long-term monthly chart with 20-month and 40-month moving averages. I can make such a chart, and here it is below.

I studied this chart for a long time. And I don’t see anything wrong with it. Gold has simply pulled too far away from its two moving averages. The 20-month MA now stands at 621. Nothing wrong with that. It’s probably time to buy some more American Eagles, for some reason I like the shiny Eagles better than the new duller Buffalos. But either way, it’s all gold.”

Russell’s broad philosophy:

“When buying stocks or bonds I think “buy income,” which is another way of saying “keep compounding.”

When buying gold I think “buy ounces.” Just keep accumulating ounces of gold — the price (through time) will take care of itself.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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