Richard Russell - Chinese Billionaires Buying Gold & Diamonds
With gold remaining strong and silver well off of its lows, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, “You've got a position in gold. How will it play out in the future, six months from now, a year from now, five years from now? A few things thing you know for certain. Gold will not go bankrupt. Gold will always have a market. All fiat money becomes worthless over time.

Gold is real tangible money, and it will be around when the last issue of fiat money is struggling to survive. Gold has a five thousand year history of representing wealth. No fiat money has ever lasted as long as a hundred years.”

Russell continues:

“So in managing risk, there is not a lot of risk to manage when you own gold. Or let me put it this way -- as far as money is concerned, the nearest thing to riskless money is gold.

Incidentally, in Sunday's New York Times there is an article about Graff, the diamond king. Graff is turning to China to sell his multi-million dollar diamonds. In China billionaires are multiplying in faster quantities than is occurring in the US or anywhere else.

All the major diamond dealers and upscale merchandisers are opening stores in China The Chinese love to flaunt it. Wealthy Chinese know the value of tangible items that are priced in the vicinity of hundreds of millions of dollars and that are portable. Damn clever, these Chinese.

(Stock market) I've posted a second chart of the Transports so that I can show the slow stochastic at the bottom of the chart. ...The slow stochastics have been very oversold and below 20. But they are now moving up, and this is a bullish development.

Thus, all around it seems that the Transports are not prepared to bearishly confirm the Industrials. I take this as a bullish omen, a situation that I place above all the advice and predictions of the "wise men" of the nation.”