Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

***** FIVE STAR Richard Russell on Gold *****

Hi country,
I seem to remember you saying that you "liked Russell's Commentary."

I found this one to be especially well thought out.

Get with the Program

Richard Russell
Dow Theory Letters
Sep 24, 2003

Extracted from the Sep 23, 2003 issue of Richard's Remarks

Gold --As for gold, which gapped higher on Monday, the metal seems overdue for some kind of pull-back or consolidation -- but will it happen?

A lot of potential buyers are anxiously waiting. Today (Tuesday) gold opened down almost four dollars, but as I write an hour after the opening December gold is down 1.70 to 386.70. Let's see how she closes.

I want to say a few words about entering the gold market.

Yesterday, I talked to Leon, my local coin dealer (858 459 2228) about incoming orders. He told me that in general he's getting a lot of inquiries, but most of them amount to "I was just asking about price and availability, but I want to wait for a correction before buying any gold."

This seems to be the prevailing sentiment, and it may work or it may not work. My own inclination is to say, "Don't try to time your gold purchases." This is a bull market, and you should decide how much you want to buy and you then go in and buy in any amount and way that makes you comfortable. Sure buy it all at once, buy it weekly, buy it in sections. In the end, in a bull market almost everything in the item will rise through time.

So my feeling is that subscribers waste a lot of time trying to time their purchases. The important thesis is that it's a bull market and your job is to "get with the program." If it's truly a primary bull market, whether you pay 375 for your gold coins or 395 is not going to be the critical factor. The critical factor is whether you buy any gold coins or gold stocks at all, and if you do, how many or how much do you buy?

I hear a lot of talk about "the gold stocks moving too far ahead of gold, the metal." But what's happening is that the gold shares are moving up as they discount a forthcoming higher price for the metal.

When common stocks move up strongly in a bull market in the face of a sluggish economy we know that the stocks are discounting better times for the economy. It's the same phenomenon in the gold market. The stocks are discounting, looking ahead.

Accumulators of gold stocks in this area are not being stupid.

The rising price of gold stocks is "forecasting" a higher price for gold.

More follows for subscribers . . .

Richard Russell
Dow Theory Letters

http://www.321gold.com/editorials/russell/russell092403.html