Market Vectors Junior Goldminers ETF (GDXJ)

[bowonwing]

"If or when gold "blows off," GDXJ is going to make a big move." from Richard Russell's dowtheoryletters.com 2/17/10. Remember: IF or when ... . Gold just over $1,100 oz.

The question -- Why hold gold if deflation is our future?

The answer -- The Bernanke Fed will fight tooth and nail against deflation. They will do it with zero interest rates and the creation of massive amounts of more dollars. This will have the effect of destroying the dollar over time. And it will direct "survival" traffic toward the one item that can not be devalued -- gold. When all confidence in fiat paper disappears, the rush will be on for the one money that cannot be destroyed or devalued -- gold.

Russell recommendation -- Do not expect too much from gold now. Over time, gold will prove to be the ultimate reservoir of wealth. In the end, gold will be "the last man standing." Compute your gold position in ounces, not in its current value in dollars.

Apr. gold closed up and holding its own after yesterday's big surge (no profits taken, which is bullish). If or when gold "blows off," GDXJ is going to make a big move."