“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.”
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