Richard Russell – Wealthy Continue to Panic Into Hard Assets
April 17, 2012
With global markets on the rebound, the Godfather of newsletter writers, Richard Russell, had some very interesting charts and notes in his latest commentary. He also discussed what the wealthy are doing with their money, as well as the most expensive real estate on earth. Here is what Russell had to say: “What are the very rich doing? Here’s what. A Cezanne painting, ‘The Card Player,’ was sold in 2011, when the royal family of Qatar bought the painting in a private sale for $250 million (the highest price ever paid for a painting).”
Richard Russell continues:
“This surpassed a Jackson Pollock painting that sold in 2006 for a record $140 million. The $250 Cezanne is one of a series of five paintings. The other four are housed in museums around the world. Qatar, the oil-rich kingdom, is trying to establish itself as an intellectual center.
(Another) group is attempting to form a diamond ETF. They will buy gem quality certified diamonds up to six 6 carats in size. Russell Comment: Gem quality diamonds are scarcer than gold, but if the fund is established, it should push up the price of gem-quality diamonds, which are growing more expensive by the month.
The fund, if it is successful, will also increase the liquidity of diamonds, as well as educating the public as to the intricacies and science of diamonds.
Every once in a while I like to take a very broad view of all the markets — the US and the rest of the world. So here goes. The first chart below includes the Dow Jones World Stock Index. Here we see the World Index forming a top below a preceding top and then sinking below its (blue) 50 day MA. Not very good.