Wednesday, June 23, 2010

Bearish echo

Who is Richard Russell and why does he keep hollering about an imminent crash?

He makes quite a point about John Paulson loading up on gold and gold-related vehicles.

One of the greatest modern traders, John Paulson, who made billions on the housing collapse, has, I understand, all his personal money in gold-related items. Many of my subscribers have now built gold profits beyond anything they have ever achieved before. I know at this point one could get itchy fingers thinking of the profits achievable by switching gold for fiat currency. I warn subscribers, stay on the yellow brick road. The big profits, the astounding profits, will accrue when gold finally bursts loose of its prejudices and freely expresses itself.

Right or wrong, note that Russell refers to hard gold, or whatever you term it. ETF gold, i.e. GLD, has its inherent risk — seizable by the Fed in an inhospitable economic climate.

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