Richard Russell – Big News For Silver & Frankenstorm In Stocks
October 30, 2012
Today the Godfather of newsletter writers, Richard Russell, writes about a Frankenstorm in stocks, and the action in gold, but Russell also takes a hard look at what is happening with silver, “… look at the silver stocks now. Something BIG could be brewing.”
Richard Russell continues:
Is the Frankenstorm symbolically hinting of our future?
So what should we, as investors, do about it? My oft expressed answer is that we don’t have to do anything about it. The strategy that I have chosen is to sit on the sidelines with a portfolio clean of stocks. Or maybe for those who have strong stomachs and an urge for excitement, limited positions in GDX and GDXJ. The latter on the thesis that gold is acting well, despite general market weakness.
I’ve been so busy moaning about the lagging gold mining stocks that I totally forgot about the silver stocks. I’ve been saying repeatedly that silver is “dirt cheap” but I neglected to look at the silver stocks that were selling at prices that were cheaper than dirt.
But wait — why have silver stocks been rocketing higher? Some shrewd operators must believe that silver is about to make a big move skyward. And if silver is going to surge, then the silver move should rub off on gold. One ounce of gold now buys a fat 53.4 ounces of silver.