With gold and silver on the move, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, “There is only one certainty regarding paper money — the longer you hold it, the less it will buy in terms of real goods or real money — gold. But there’s a big difference between the current precious metals bull market and the bull market of the 1970s. The 1970 bull market drew tremendous interest (I was there). Everybody I knew (even the gold haters) were watching that bull market with keen interest, particularly during the wild “blow off” days of the late 1970s, when silver was rocketing higher — rising every day by limit up.”
Richard Russell continues:
“In comparison, today’s huge precious metal bull market is greeted with yawns, that is, if it is greeted at all. I’ve been calling the current gold/silver market the “great stealth bull market.” Ask the average man or woman on the street what’s happening to precious metals, and they’ll give you a blank stare and maybe a “Duh.” Ask them if they own any gold or silver, and they’ll give you a sheepish “Nah.”
Gold (April) closed on March 2 at 1437.40, a record high. On March 9 silver closed at 36.04, highest since 1981. Yesterday both marks were bettered. Where’s the excitement, where’s the interest, where are the articles in the newspapers?
Time to study the chart (above). As I’ve been saying, gold in its advance has periodically tested its 150-day moving average over the past few years (150-day MA is shown as the blue line on the chart). Note that on the most recent “correction,” gold didn’t even test its 150-day MA. When I saw this, I realized how powerful the forces under gold were.
Gold is now “out in the open” with no overhead resistance and no overhead supply. So far the bull market advance since 1999 has been steady, quiet, and orderly. Except for its spectacular slow and relentless climb, there’s been no excitement in the gold bull market…