NASDAQ_400
04-09-2003, 05:44 AM
Gold, like diamonds and Picassos...
Richard Russell
Dow Theory Letters
April 9, 2003
Extracted from the 8 April 2003 issue of Richard Russell's Dow Theory Remarks
Gold -- Last Friday and again on Monday June gold closed lower. But each day gold opened lower
and then closed near its high for the day. Today gold actually opened higher at 321.70, but as
I'm writing this in the morning (Tues) I obviously don't know how gold will close today.
Also, although gold closed lower for five days in a row, neither XAU or HUI confirmed by breaking
to new lows. In fact, XAU and HUI made their lows on March 27 -- nine trading day ago. My
conclusion is that there's a good chance that gold is either at its low or that gold is in the process
of bottoming.
Gold may bounce around and back-and-fill for a few weeks to even a month or so, but I believe
we are now watching the bottoming process in action. The clincher for gold bulls would be HUI
closing at 124 or better -- or June gold closing above 326.00.
About gold -- I've suggested that subscribers refrain from trading gold. I see gold as a
long-term insurance holding. Keep trading gold, and in due time you'll trade yourself out of your
position.
What I advise is that you take a position that you can "live with," and then sit tight with that
position. Your position might be half coins and half gold stocks. My suggestion is that your gold
position be 7% to 10% of your assets.
You don't trade your life insurance policy and you don't trade your house. Furthermore, it's
probably a good thing that you don't price your insurance policy and you don't price your house
every day or every week. They're simply assets that you hold. Your attitude towards gold should
be the same.
Let me put it this way. A hundred years from now your house won't exist, the dollar won't exist,
you won't exist, your portfolio won't exist, and who knows whether the world as we know it will
exist. But gold will exist. Gold, like diamonds and Picassos, will still be money. I'll bet on that,
and if I'm wrong I'll pay off our bet in the year 2103...
More follows for subscribers. . .
Richard Russell
Apr 9, 2003
Dow Theory Letters
© Copyright 2003 Dow Theory Letters, Inc
http://www.321gold.com/editorials/russell/russell040903.html
Richard Russell
Dow Theory Letters
April 9, 2003
Extracted from the 8 April 2003 issue of Richard Russell's Dow Theory Remarks
Gold -- Last Friday and again on Monday June gold closed lower. But each day gold opened lower
and then closed near its high for the day. Today gold actually opened higher at 321.70, but as
I'm writing this in the morning (Tues) I obviously don't know how gold will close today.
Also, although gold closed lower for five days in a row, neither XAU or HUI confirmed by breaking
to new lows. In fact, XAU and HUI made their lows on March 27 -- nine trading day ago. My
conclusion is that there's a good chance that gold is either at its low or that gold is in the process
of bottoming.
Gold may bounce around and back-and-fill for a few weeks to even a month or so, but I believe
we are now watching the bottoming process in action. The clincher for gold bulls would be HUI
closing at 124 or better -- or June gold closing above 326.00.
About gold -- I've suggested that subscribers refrain from trading gold. I see gold as a
long-term insurance holding. Keep trading gold, and in due time you'll trade yourself out of your
position.
What I advise is that you take a position that you can "live with," and then sit tight with that
position. Your position might be half coins and half gold stocks. My suggestion is that your gold
position be 7% to 10% of your assets.
You don't trade your life insurance policy and you don't trade your house. Furthermore, it's
probably a good thing that you don't price your insurance policy and you don't price your house
every day or every week. They're simply assets that you hold. Your attitude towards gold should
be the same.
Let me put it this way. A hundred years from now your house won't exist, the dollar won't exist,
you won't exist, your portfolio won't exist, and who knows whether the world as we know it will
exist. But gold will exist. Gold, like diamonds and Picassos, will still be money. I'll bet on that,
and if I'm wrong I'll pay off our bet in the year 2103...
More follows for subscribers. . .
Richard Russell
Apr 9, 2003
Dow Theory Letters
© Copyright 2003 Dow Theory Letters, Inc
http://www.321gold.com/editorials/russell/russell040903.html