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| The late Richard Russell, founder and publisher of the Dow Theory Letters, was a big fan of gold. He was also a big fan of taking action, especially when it came to gold.
He believed in buying gold on a regular basis. That is, averaging in through the ups and down. Why? As Richard often noted, gold is the only real money. It has stood the test of time for more than 5,000 years and it’s accepted all over the world. Throughout history, paper currencies have come and gone. But there’s not one paper currency that has kept its value… not one. Instead, they’ve all ended up as souvenirs or worthless historical curiosities. Gold, however, is the big exception. It’s the only global currency and it’s consistently maintained its purchasing power over the centuries. Some will argue gold’s not a big deal. They’ll say it doesn’t belong in the monetary system, it’s old-fashioned and so on. But nothing could be further from the truth. Gold does its own thing. It doesn’t need a government to tell you if it’s valuable or not… it just is. That’s why we feel it’s important to buy and keep a 25% position in gold and precious metals in your investment portfolio at this time. And if you haven’t bought yet, it’s time to take action. Why? To refresh your memory… Gold turned bullish earlier this year when it surged above its long-term 23-month moving average. |
This moving average has been very reliable in identifying the major trend and by staying above it at $1206, the major gold trend remains up. That is, the price is headed higher. Over the past couple of months, the gold price has been coming down. This has been a normal pullback following its steep rise and it’s providing a great opportunity to buy gold at a lower price. The same is true of the gold shares. Remember, the bull market remains in force and it’s been very strong. Despite gold’s recent downward correction, it’s still up about 18% this year. And that’s about three times more than the Dow Industrials. Currently, we believe gold’s downward correction is nearing an end. And if it is, you want to take action… For those of you who are new to this and don’t know what or where to buy… we recommend buying the popular one ounce gold coins like the Canadian Maple Leaf, the Krugerrand and the American Gold Eagle. Mary Anne and Pamela Aden are sisters, who have published The Aden Forecast for decades. On Richard Russell’s death, they were chosen to continue publishing Dow Theory Letters. Before you buy gold or silver, read the articles at
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