Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (2916)	1/25/2003 10:39:04 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

Gold Show me where the gold is being accumulated and I'll show you the next world power Richard Russell Dow Theory Letters 27 January, 2003 Gold -- The metal is in the position where traders have to whine, "It's too high, I can't buy it, I just haven't got the guts to chase it here. It's got to correct somewhere along the line -- and then I'll buy it." Yeah, right. This is the way a bull market advances, while leaving the crowd out. Only we die-hard gold bugs are making money here, only investors who believed that real intrinsic money is preferable to fiat paper that is being ground out at no cost by the Fed's printing presses. "What's wrong with the gold shares?" I'm asked, "Why aren't they surging with gold? I just ran off a chart of gold divided by HUI, the "Gold bug's" index of unhedged gold shares. From February 1987 to October 2000 gold shares outperformed the metal by a wide margin. Since October 2000 gold has outperformed gold shares. The ratio is now just about where it was in February '87 -- so that's the story. The stocks moved up first, then gold moved up, and now they're about even as they relate to each other. My guess, and this is only a guess, is that the two, gold and gold shares, will now move roughly in lock-step with each other. My advice has been to buy gold coins AND buy gold shares. There's only one bull market today -- the bull market in tangible goods led by real money -- gold. If there's only one bull market, why not get in it? Hey we are in it. Now it's only a question of when the rest of the world gets in it. Headline from today's USA Today -- "Gold Hits 5-Year High, But Glittering Prices May Tarnish Quickly." This is the kind of thinking and headline that keeps the crowd OUT of gold. Yep, gold is still in its early or accumulation phase. History tells us the flow of gold points the way to where the power is. The stronger the nation, the more gold it accumulates. Show me where the gold is being accumulated and I'll show you the next world power. 321gold.com