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Fabulous Gold Lecture by Richard Russell

In 2000, gold was selling at about $260 per ounce and gold shares were at bargain-basement prices. Russell knew that he could safely buy and hold these shares, since gold doesn’t go out of style and it was only a matter of time before interest in the yellow metal returned, as it has throughout history. All great bull markets begin with stocks selling “below known values,” and that is where gold mining shares were in 2000. Russell equated that with the Dow in June, 1949. In 2000, he was obsessed with the idea that a great bull market in gold was just beginning. Now that gold is well above its 1980 high of $850, Russell predicts that the gold bull will not end with a fizzle and a whimper; it will end with intense speculation and widespread interest from funds and the public. We have not seen that kind of activity yet, but he is convinced that a period of wild speculation in gold lies ahead. He advises ‘loading up on gold’ because what is coming is beyond anything seen by the last three generations of Americans. More money will be made in gold’s final explosion than was made during the first two phases combined. Great bull markets are seen once, perhaps twice in a lifetime. The current gold bull market sneaked up on most people; the phrase ‘gold bull market’ is still sneered at by analysts today. Most of the current reporting on gold is in the form of warnings: gold is too high; gold is in a bubble; gold will correct; gold is a fool’s game. Nonsense, says Russell; the yellow metal is moving closer to its climactic speculative third phase. The negative comments will only serve to make the gold bull market that much stronger. There is nothing more powerful, he says, than a primary bull market that has been denigrated, spat at and held back for years.
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