Russell - $2,000 Gold Shortly, Then $2,500, $5,000 & $10,000
Source: With tremendous volatility in gold, silver and stocks, the Godfather of newsletter writers Richard Russell had this to say in his commentary this week, “I think what I'm most interested in now is whether and to what effect the fading market has on the US economy. I honestly don't think most people are taking this market decline seriously. After all, we "have the marvelous Fed" and the Fed has always come through in an emergency. Besides, probably 90% of living Americans have never seen or lived through what I call really "hard times."

Richard Russell continues:

“But a collapsing market within a fading economy is a dangerous situation. This is exactly what happened after April 1930. Once the big upwards correction topped out, the market headed down in earnest, and it was the start of the Great Depression.

Therefore, I want to see whether the US economy starts to unravel, as it did during 1930. If it doesn't, then we're not seeing a repeat of 1930. And my comparisons with today and 1930 will have been misplaced (let's call it wrong).

The P&F chart of gold remains bullishly intact. But gold is becoming extended and overbought. The next nearby target is 2000 for gold. Central banks, which have been net sellers of gold, are now net buyers, particularly the Asian central banks. I expect gold to be erratic an unstable like the rest of the market, and it will takes guts to sit with gold over coming weeks.”

“When chaos reigns, people look for certainty. When all is lost, only one item stands supreme and has been supreme for thousands of years. That item is gold. You can see on the P&F chart that gold has been, and is, working its way higher. The anti-gold element is afraid of gold hitting the even number of 2000, thus we see gold, day after day, fluctuating in the 1500 to 1700 area, but never breaking out to 1900, or God forbid -- 2000.

At 2000, the next objective would be 2500, and from there 5000, and from 5000 -- 10000. As gold marches higher, it's playing the death knell for fiat money. And every central banker knows it. So far, the P&F chart does not show a three-box correction.

Just imagine, the dollar, the world's reserve currency, backed by a nation with a credit rating that is less than AAA. No wonder far-sighted investors are opting for gold instead of man-made (fiat) money.

This is no time to be a wise-ass. Sure the stock market has appeared hysterical, but in the end it always makes sense. Today (Thursday) we got the second 90% up-day from the NYSE, this after a long series of brutal and frightening sell-offs. This is what I've been waiting to see. Stocks have been battered down far enough so that the big money and the institutions believe they are values, and thus the big money was ready to pile in. And pile in they did, yesterday and today. With the appearance of two 90% up-days, I'm saying that the bottom of the correction is IN, and that the secondary trend of the market has finally turned bullish."

According to Richard Russell this move in gold is far from over. The mania in gold still lies somewhere ahead. Gyrations aside, remember to be right and sit tight with your positions.