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The riskless currency

Richard Russell snippet
Dow Theory Letters
Apr 2, 2010

April 1, 2010 -- Gold -- Newmont is a leading gold stock, and I've been recommending it. This is the kind of pattern you see in leading stocks in a bull market. NEM has formed a large head-and-shoulders formation. This morning it advanced over two dollars, and in doing so it broke out above its right shoulder. The stock should now heading considerably higher (P&F upside "count" is 73).

But more important, it tells me something about the future of gold. The future is bullish.

Platinum (below) often leads the precious metals group. The P&F chart below is bullish with an upside "count" of 1840. July platinum is trading today at 1675. At 1680 Platinum would break out and deliver a bullish signal.

I'm indebted to Dennis Gartman for the following statistics. These ratios show general government debt to GDP:-

Studying these ratios, I have to think that almost all fiat currencies are at risk. There's only one currency that is riskless since it needs no country to back it. That currency possesses one unique character. On its own it IS intrinsic wealth. That currency is gold.

In the years ahead, fortunes will be made by those holding large commitments in gold. But forget profits, fortunes will be SAVED (preserved) by those who hold quantities of gold.

As I write, gold is only 94 dollar points from making a new all-time high. It does appear that the rise in gold is accelerating.


Richard Russell
website: Dow Theory Letters
email: Dow Theory Letters

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