Is it too late to buy gold plus Cash for Gold – are you kidding?

Posted by Richard Russell - Dow Theory Letters and Fred Goldstein

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A brief excerpt of the lengthy daily internet comment by Richard Russell of Dow theory Letters a man who has made his subriber’s fortunes (at least those that follow his advice). One of the best values anywhere in the financial world at only a $300 subscription to get his report daily for a year. HERE to subscribe.


Is it too late to buy gold?

Answer — For those of us who, years ago, were buying one-ounce gold coins at $350 a piece, the current record gold price probably seems dangerously high. But to India and China the current price of gold doesn’t appear high. I can’t tell whether gold has entered its speculative third phase yet, but often buyers in the third phase make greater profits in a shorter time than the early buyers made while accumulating gold during the first and second “bargain” phases. With US national debt climbing into the trillions of dollars, who knows where gold is going? – Richard Russell


Cash for Gold – are you kidding?

In the US, “nobody” (and this includes most funds) owns gold. Somewhere ahead it will be considered mandatory to own some gold. When that happens, “Katie bar the door.” I’ve often said that one of the most difficult things to do in investing is to sit through the greatest part of a primary bull market. To subscribers who bought gold early and still have their gold — my congratulations.

For thebetter part of a year Americans have been besieged with television, radio and print ads imploring us to sell our gold coins and jewelry for cash. Aside from helping a poor soul in need of immediate cash, the concept is flawed and needs to be analyzed and exposed.

The ads usually say the gold price is near or at all time highs. 2009 marked the ninth year in a row the price of gold rose, up nearly $200/oz. since January 2009. Anyone who sold their gold earlier has left a good amount of money on the table.

These ads also never disclose that while the nominal price of gold is at an all time high, if adjusted for inflation gold is less than half of an inflation-adjusted price of $2,350/oz. I am not critical of companies making profits, but I am critical when ads mislead consumers and prey on the uninformed.


… more HERE.