Richard Russell - Hang on to Gold, Massive Collapse Coming

Someone asked in the other meltdown thread, wonder who'll be next to post another apocalyptic economic collapse doom-and-gloom thread.

Well, that person just happens to be me.

But there's one major difference with this thread, and somewhat disappointing - there's no date specified for when the next massive collapse will happen. So I will just say it's imminent. Though it could happen at any time, it may not happen for a long time. But, it will happen.

So anyone read or follow this Richard Russell dude? How's his credibility to see market outcomes, looking forward? Does he state a valid point about the '60 years of inflation and leveraging' that stands to be corrected sometime in the future? How far in the future that may be.

I cite the approximate last half of the blog so see link for full text if interested.

Source

And I wonder -- is there a super bear market waiting for us somewhere in the future? The great ride from the end of WWII to today has never been fully corrected. Some day it will be. And impossible bargains in stocks will be lying around -- with very few willing or solvent buyers.

Such is the fascination of the stock market. In this business the ‘impossible’ never seems to be possible. But the impossible definitely is possible in the strange and exotic world of Wall Street. My opinion -- the retail public is buying the earnings while the big money is giving them all the stocks they want. Gold gave a little (recently), but not enough to worry about.

As for gold, I have a long-term position in the yellow metal that I will probably never exit or sell. My thinking is that sooner or later we will be subject to a major correction (bear market) that will wipe out or correct 60 years of inflation and leveraging. When that happens, I want to own the only kind of money that the Fed can't destroy.

When the big deflation and deleveraging arrives, I see the Fed trying to halt it with QE3 and QE4 and QE5. Why do I say that? Because that's the way the Fed thinks, and that's what the Fed does. They did it in 2007 and 2008, and we know that the current Fed head will not tolerate contraction, and has a record to prove it.”

Fear mongering.

Dude probably spent a fortune on gold and realized it's only going to tank in value, so brainwash the paranoid crowd to think gold is a good buy.

reply to post by DaTroof


i don't understand how anyone could ever think precious metals would ever fail under the mind of greed in this world. Sure a lot of currency isn't backed by what it should be but precious metal's will always dominate the world. Everyone on this planet is greedy and we've been slaved down to owning up to the value of precious metals whether it be backed by paper currency or the metal. Precious metals will always dominate the world.

reply to post by Donahue


This isn't the 1600's. Gold is an absolutely worthless metal. Its only practical applications are for electronics and aeronautics. Unless you're building tens of thousands of microprocessors or shielding satellites, gold has ZERO value.

Before the housing bubble burst, realtors and property investors insisted those who could afford to should purchase properties and flip them. Now a large percentage of those mortgages are upside down.

This stupefying gold rush is no different. Find suckers to buy high before the value crashes. I can't believe more people don't see this.

Originally posted by DaTroof]
This isn't the 1600's. Gold is an absolutely worthless metal. Its only practical applications are for electronics and aeronautics. Unless you're building tens of thousands of microprocessors or shielding satellites, gold has ZERO value.

I can see your point, but if it somehow has great importance to those who currently rule this planet, then it would have value for that reason. And personally, I think that's the case.

I can't wait for the collapse to happen. At least we will have a chance to rebuild a society where there is no greed or corruption controlling it. That is not possible in a money based society.

I'm prepared to give up all of my luxuries like hot water, electricity and a comfortable bed and home for just that small chance that we could have a humane based society. When the collapse happens, I can only see it going one of two ways after that. Either a humane based society will be established, or a hardcore, microchip implanted, electronic monetary slave society.

We need this collapse for the chance to be free.

reply to post by DaTroof


well to be honest its the bankers that make the gold standard so dominate. so unless you are a banker you can't change a thing. So you might as well condone to what the rich are in too and that is what will matter. My family put in $3500 dollars with a partner for a mine and came out with the first load of $240 million. So i don't mind the gold fanatics at all.

reply to post by NuclearPaul


Don't even count on there never being greed in this world. Sure if SHTF things would be cooled down and to your liking for a bit. But the human race is meant to eventually become dominate of this world. It's in our nature. Obviously it is. Look where we are now......

reply to post by DaTroof

gold has ZERO value

I'm thinking of seinoirage as it is used today (e.g. 50 state coins). Governments engage in metal-based seinoirage, and as such this idea that gold has zero value seems to only apply when people say it applies. I mean I've no idea where you hail from, but the U.S. government has profited from metal-based seinoirage. This alone implies metal currency possesses intrinsic value--albeit intrinsic value of a varying nature.

At any rate a medium of exchange and store of value can be anything that people decide is of value. Cigarretes, for example, are a form of money in prisons. And don't people ultimately decide this? Why not use grams of dirt in lieu of cigarretes, or paint chip, et cetera? The reason is self-explanatory, just as it is self-explanatory why many people have chosen to invest in precious metals: fiat currencies are abused to the extent that their value approaches that of dirt. And yeah, metal-based currencies can be and have been equally abused to the point that their value approaches dirt, no thanks to the time-honored tradition of trimming; nonetheless, saying gold has zero value by equating it to utility misrepresents context. If that's the argument you want to make then I think it's perfectly fair to ask you to describe the utility of a piece of fiat currency outside of its role as a form of money. The only thing that comes to my mind is that it would aid in starting fires. And this idea about homes? Come on! Interest rates and foolish lending practices created that bubble. I don't see the connection between interest rates and lending practices affecting the price and market for gold.

Why GOLD?? How about food, ammo, toilet paper...

Looks like someone is peddling this shiny rock to fill his pockets or the pockets of others.

WHO NEEDS A SHINY ROCK when everything goes to hell??

Cant EAT it. Cant shoot wild game with it. Cant wipe your rear with it.

USELESS. But keep peddling the shiny rock because there are SUCKERS everywhere!

reply to post by HangTheTraitors


Not necessairly a shiny rock, but in four words: double coincidence of wants.

The type of people and mentality that existed in the 1900's over golds value is long gone.
Yes, on the financial markets gold can be gambled and resold as often as you like. its like a game of 'taxman'.. last person left with the card in his hand when the game ends loses a lot of money.
IF it ever happens that economic system explodes over night.. and money is accepted any more.. i could really give two hoots about the man with the heavy glittering bar..

can drive me car on gold
cant feed me kids gold shaving
cant use gold bar to kill some homeless addict who tries to break in and take my money

keeping in mind that the dude next door, who's got his food supplies and family protected, what good is gold to him either?

I do laugh but, at the people who’ve invested so much money in gold.. yet dont have it physically in their possession. you really think the government and the finance industries are going to give you this gold if the economic bubble explodes?

… but I saying all that.. a guy I knew used to know would throw 2-3grand in once a month.. just watch it and place small gains and quick sells.. doesn’t look that hard to make a few hundred dollars a month….

Originally posted by DaTroof
reply to post by Donahue

 

This isn't the 1600's. Gold is an absolutely worthless metal. Its only practical applications are for electronics and aeronautics. Unless you're building tens of thousands of microprocessors or shielding satellites, gold has ZERO value.

In a similar way to pounds, yards and gallons having value as points of reference that helps create our systems of civilization, gold distributed around the world is the closest thing we have to an objective reference point of value measurement.

We value gold because it has no real practical uses to interfere with it's cornerstone value as objective money. It's the network effect of distributed value combined with physical salience of wealth value in a world of paper dishonesty.

Our use of money as a reference of objective exchange value to measure against is key to producing a complex system of economies. The value of a stable reference point is very high to civilization and gold is about to truly measure this value as it exposes the value of all paper dishonesty in the world.

Originally posted by DaTroof
This stupefying gold rush is no different. Find suckers to buy high before the value crashes. I can't believe more people don't see this.

Your last bit here applies perfectly to paper gold and gold ETF's but not the physical metal itself.

the gold market is getting played harder then the housing market. just wait till tptb pull out on gold (while hedging that bet). gold will be worth around $30 an ounce very soon.

reply to post by NuclearPaul

We need this collapse for the chance to be free.

That's a dumb statement.

The chance to be killed for what little you have. With no police recourse.
The chance to be slowly starved.
The chance to drink water from a near by creek.

How free will you feel when all your time will be spent on scavenging for food.
How free will you feel when you walk down the street knowing someone is sizing you up as a target.

All these people rooting for a collapse don't realize they are rooting for the return of the 14th century.

I find all this financial stuff baffling at the best of times... but I guess that's how it's meant to be by those who run the casino!

Anyhoos... I was reading an article this morning by someone working in the precious metals markets, stating that gold is leveraged to around 100:1 right now. Is it only me who see the rificulousness of this situation?

What he is saying is that for every 100 customers, there is only 1 gold bar...each customer holig a piece of paper of ownership. So, what happens when all those customers want to take physical possession of their "property"?
Isn't this how the whole financial system has reached the inevitable tipping point of collapse, where actual holdings of anything of actual value, are leveraged at ridiculous ratios purely in the name of profit? Where anything of value is sold to multiple customers on the premise that they'll never ask for actual possession? Seriously, who the hell came up with that idea?

So, for all those people who think they are safe investing in gold and holding a bit of paper.. I may have a nice bridge for sale if you are interested.

Originally posted by samkent


All these people rooting for a collapse don't realize they are rooting for the return of the 14th century.

So what's the answer then? Keep the status quo amd carry on like good little drones sending our hard earned cash to the bankers every time they game the system to a state of collapse? Let them start more wars to further enrich themselves, while we peasants are expected to "make the ultimate sacrifice", while they sit safe and sound in their mansions checking their arms industry stock and smiling at how much they are making?
In some respects, the rule of the modern day robber barons isn't all that different from the 14th century anyway.

reply to post by Britguy


Do you really think any other government or banking system will be better?
You have the right to decide where you store your money. Bank, credit union, mattress.
You have a say in who runs your government. You could run yourself.

If you take down a system you feel is corrupt what will take it's place? Will it be better? Or the same just with new management?

It's easy to bitch about something. Why not fix it?

Originally posted by NuclearPaul
I can't wait for the collapse to happen. At least we will have a chance to rebuild a society where there is no greed or corruption controlling it. That is not possible in a money based society.

I'm prepared to give up all of my luxuries like hot water, electricity and a comfortable bed and home for just that small chance that we could have a humane based society. When the collapse happens, I can only see it going one of two ways after that. Either a humane based society will be established, or a hardcore, microchip implanted, electronic monetary slave society.

We need this collapse for the chance to be free.

You are, of course, assuming that you would survive the "winner take all" type of public disorder that would almost certainly accompany the collapse.

reply to post by surrealist


The collapse has been ongoing for years now, we haven't seen the worst of it because they keep papering over it to prop up the system just a little bit longer while they prepare.

Anyone who doesn't believe there is about to be a massive economic collapse is deluded and clearly doesn't pay any attention to the global strike being planned for May, the record unemployment in Spain, the fact that Greece HAS to default, that American debt is STILL growing...

Look at what your government is doing, what measures they have put in place over the last two or three years, the things they are trying to rush through now, and you'll see they they know very well what is going to happen.

They are preparing for massive civil unrest, the arrival of new political parties (out of corporate control) and general chaos. Mark my words, within the next few years we will likely see revolutions in all Western nations as our governments become more like dictatorships and the people rise up to fight them.

Gold and Silver are only useful for those with large amounts of wealth that they want to secure over several years. But they can only do that if they also have a private bunker somewhere. Buying "theoretical" gold and silver to be held by some bank in the ass end of nowhere is pointless.

For those with less than hundreds of thousands to safeguard as an investment, we need to be investing in being self-sufficient, in survival, self-defense and other primary things. You might be able to use a little gold to bargain with an idiot who doesn't comprehend what's happening, but then if they're that idiotic they'll probably be the ones robbing you rather than trading with you.

Don't believe the idiots telling you to invest in gold or silver, especially those who want you to invest with them. Half of them are con artists, the other half are opportunists who don't get it themselves.

Originally posted by babybunnies

Originally posted by NuclearPaul
I can't wait for the collapse to happen. At least we will have a chance to rebuild a society where there is no greed or corruption controlling it. That is not possible in a money based society.

I'm prepared to give up all of my luxuries like hot water, electricity and a comfortable bed and home for just that small chance that we could have a humane based society. When the collapse happens, I can only see it going one of two ways after that. Either a humane based society will be established, or a hardcore, microchip implanted, electronic monetary slave society.

We need this collapse for the chance to be free.

You are, of course, assuming that you would survive the "winner take all" type of public disorder that would almost certainly accompany the collapse.

I think a lot of people would be okay. Those who team up with their neighbors and support their own small communities would most probably be okay. It's just a matter of maintaining self defense and using common sense.