Richard Russell - Expect Mass Entry Into Gold By Retail Public
With gold hitting new all-time highs and silver surging to $43, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary,

“Gold -- I've been receiving many calls to the effect, ‘Should I sell my gold now?’ My answer is that I don't have the ultimate answer to that question. My thinking is that gold has been in a decade-long (bull) market. Most extended bull markets end with a third-phase period of torrid speculation and a mass entrance by the retail public. So far, we have seen neither.

My inclination is to ride the gold bull market until it provides a classic ending. That means sitting through many a coming correction and perhaps extended periods where gold does little or nothing. In other words, I may be doing something stupid but I'm sitting.”

Russell continues:

“GOLD -- Lord bless moving averages ‘that work.’ One MA that has worked beautifully for two years is the 150-day MA of gold. Note below that gold has ‘tested’ or touched the 150-day MA of gold on five separate occasions over the last two years, and each time gold has held -- and then rallied to new highs.

Gold's latest run has taken it rather far ABOVE its 150-day MA, and now gold has me a bit nervous. Has gold run up too far? Does gold need a rest? Will gold sit on its butt, until the 150-day MA rises to touch it (nah, that would take too long)? Or is gold rising on a new and steeper angle?”

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