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Will the mass media report an upward breakout in the bullion market?

*Dow Theory Letters, by Richard Russell, August 19, 2013

”Barron’s was surprisingly cautious in its latest issue. On the cover, Barron’s cautions its readers that future earnings may be disappointing. An article inside notes that the bull market is getting old, and that caution is recommended.

My own thinking is that it’s a risky business to stay invested in this market, and I’m just as happy to watch the show from the sidelines. I just don’t feel safe being in a market that has been propped up by a Fed that can’t make up its mind.

I don’t believe the economy will be bright enough for the Fed to cut back on QE later this year. A continuation of QE should be bullish for gold. Speaking of gold, I was amazed that there was absolutely no mention of gold’s brilliant performance last week in Barron’s or any other newspaper. Evidently, nobody wanted to even mention gold’s upside breakout. Just a complete silence on gold — amazing. When gold was falling, it was the talk of the town.

What was mentioned was the new high in rates reached by the 10 year Treasury Note. After reading a ton of market literature, I decided that the position I felt safest with was gold bullion and cash, and of the two, I was least satisfied with cash. This is because the purchasing power of cash is steadily being whittled away. The longer you hold it, the less it will buy.

By the way, for informed information or true economic statistics, I refer you to John Williams’ “Shadow Government Statistics” at www.shadowstats.com. This site gives you some actual and honest information on what’s happening in our economy.”


*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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