Russell on Gold
>>I've made this prediction before but I'll repeat it. At some point in this bear market, I expect the price of gold and the Dow to cross on a ratio of 1 to 1 as it did in 1980. At what price? OK, pin me down -- my guess around 2000 to 3000 or if anything lower.<<
Richard Russell
Dow Theory Letters
posted 29 October, 2002
Extracted from the 29 October, 2002 issue of Richard Russell's Dow Theory Remarks
Meanwhile, the faster-moving 50-day MA for Dec. gold stands at 317.50. Dec. gold, as I write, is trading at 317.20. If Dec. gold can close decisively above 317.50, that would constitute a "buy signal." Note that the gold shares are beginning to firm across-the-board.
If Dec. gold can close above 320 it will stir up more interest. And of course, 325 and more importantly 330 would be the next upside targets. Historically, gold shares have tended to hit their lows in the fourth quarter of the year. Well, we're there.
As a matter of interest (I should say great interest) the Dow in August 1999 would have bought 42.1 ounces of gold. That was the peak of Dow strength against gold. Today the Dow will buy 26 ounces of gold.
I've made this prediction before but I'll repeat it. At some point in this bear market, I expect the price of gold and the Dow to cross on a ratio of 1 to 1 as it did in 1980. At what price? OK, pin me down -- my guess around 2000 to 3000 or if anything lower.
Dec. gold gapped up 2.50 to close at 318.10. This takes Dec. gold above its 50-day MA, which stands at 317.50, and gold thus flashed a "buy" signal. I bought more kruggies today.
321gold.com |
