Excerpt from R.Russell tonight:
"So I believe what we're seeing now is the very beginning of a LIQUIDATION of assets. If it's got a market, it's being sold. We're seeing the early beginning of a move to raise dollars -- to raise dollars to carry, to finance, and to pay off debt. Debt's "short position" against dollars is beginning to operate. Commodities, stocks, bonds, anything that is liquid is being sold to raise dollars.
How about gold and silver? Gold is cash, but over the last few days gold is being sold as a commodity. This is stupid, but it's happening. I never argue with the markets, even when I believe they're being irrational and emotional.
Silver may be a different story. Silver is a chameleon. In a inflation, silver becomes a "precious metal," and a monetary metal, and silver goes up with inflation. But in a deflationary situation silver is viewed as an industrial metal. In a deflationary environment, silver is not, as in the case of gold, viewed as money.
If we're going into a deflationary economic collapse, holding gold doesn't worry me. But holding silver would worry me." |
