Political Metals

March 26, 2011 | KWN

Richard Russell - Gold To Catch Fire and the Public Will Notice

“There is only one certainty regarding paper money — the longer you hold it, the less it will buy in terms of real goods or real money — gold.  But there’s a big difference between the current precious metals bull market and the bull market of the 1970s. The 1970 bull market drew tremendous interest (I was there). Everybody I knew (even the gold haters) were watching that bull market with keen interest, particularly during the wild “blow off” days of the late 1970s, when silver was rocketing higher — rising every day by limit up.”

“In comparison, today’s huge precious metal bull market is greeted with yawns, that is, if it is greeted at all. I’ve been calling the current gold/silver market the “great stealth bull market.” Ask the average man or woman on the street what’s happening to precious metals, and they’ll give you a blank stare and maybe a “Duh.” Ask them if they own any gold or silver, and they’ll give you a sheepish “Nah.”

I don’t think this is going to continue. Some where ahead the precious metals bull market is going to turn wild and speculative. Only one phenomenon will serve to create this excitement. That phenomenon is HIGHER PRICES. The public can resist anything in markets except steadily rising prices.

As for steady higher prices and excitement, I suspect that silver is about there. As for gold, maybe not yet. But somewhere ahead gold is going to catch fire. That will be the time when the great American public will decide that they have to have some gold, maybe just a coin or two, or maybe just a few shares of GLD — but that time is coming.”