Richard Russell dismisses the chatter about a bubble in gold in his latest Dow Theory Letter. Here’s an excerpt, courtesy of our friends at The Daily Crux:
Question: Russell, what do you make of all the talk about gold being in a bubble?
Answer: I’ve seen a number of bubbles in my life, and they have all been associated with huge and frenzied participation by the public. Think of the tech bubble, the housing bubble, every bubble was characterized by broad and frantic public participation.
Who do you know owns gold or has any gold stocks or ETFs today? Ask 20 people at an investment conference whether they have participated in the gold bull market, and you will be shocked at how few have entered the great gold bull market.
So if gold is in a bubble, it’s a bubble in the minds of those who have completely missed the gold bull market. Public participation in the gold bull market has, so far, been unbelievably thin in the US. If gold is in a bubble, it’s a bubble unlike any that I have ever seen before.
Source: The Daily Crux
Thus far, Russell’s been right on the mark with gold. Back in October, he laid out a fantastic bullish case for gold on Jim Puplava’s Financial Sense Newshour – if you haven’t yet listened to it, I’d highly recommend it.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.