Richard Russell snippet from Dow Theory Letters today:

“…gold is in a clear and obvious primary bull market today. These situations come along maybe two or three times in a lifetime…I the year 2000, they were literally giving gold mining shares away. At that time gold shares were so ridiculously cheap that I told subscribers that they should buy theses stocks…and hold them as perpetual warrants.

…I’ve never seen or experienced a primary bull market that didn’t end up with a third speculative phase – this is a time when a bull market “blows its top”. I feel certain that the current huge bull market will do the same.”

…fiat paper is a fraud that will be found out. When that happens and people realize they have been hoodwinked by their government, there will be such a rush (including both fear and greed) for gold that it will make the recent tech mania look like conservative investing.

…As the months go by, we are pressing ever closer to the speculative phase of the gold market. That will be something and even terrifying to see. ….The market seldom gives you the chance to get rich.” Richard Russell.

So here we are today with our JPM, gold/silver stock holdings. Many gold experts think we are now near/beginning that speculative third stage of this giant bull market in gold (and silver). Some such as John Embry are predicting a parabolic rise in gold upon us in the near months Sept thru Dec….which is annually a very strong market for the PMs. I addition, the insatiable global, swelling demand for gold by both the rich and the populous ( and now, Central Banks) points to the realization that the paper fraud has been, or is on the cusp, of being “discovered” and daily we see fomenting anger towards western governments…especially in parts of Europe and the U.S. (tea party anyone?) People are finally getting it, as JP Morgan said a hundred years ago: “Gold is currency. Everything else is credit”.

When the US Gov. is spending over three times it’s revenues… articles on potential Gov. (Fed., State, Municipal, city and county) Bond default appear and Pension funds are underfunded and being raided…and a daily barrage of so much more, people are “getting it”. When the stock of Smith and Wesson is a recommended “go to” investment and food commodities are rising, people are getting it. When farmers and small business cannot get the credit needed to carry on, people are getting it. When manufacturing is less than 30% of the economy and consumer spending is 70% of the economy, people are getting it. When the Gov. statistics are worn out lies and more people seem to be out of work more than the media reports, people are getting it. When Gov. corruption and Wall St. Theft have reached hideous and in-your-face proportions, the anger seethes. When only 50% of the working people are carrying the load for the other 50% working for the public sector, people are getting it. When 47 million Americans are on food stamps and the housing industry is going down the toilet with commercial real estate following, people are getting it. When neighbours are suddenly sleeping n their cars and animal services are swamped with abandoned (often mistreated) family pets, the anguish is growing.

When one reads a chain of articles such as those of the venerable Richard Russell, Jim Sinclair, GATA, Peter Schiff and so many more…and now even a few intrepid main steam economists and economic journalists…all the signs are there. Those who heeded the warning s early have had handsome returns. Those who heed them and get positioned now will be in a minority of the population that sees very healthy returns of their investments over then next several months. Once the stuff really hits the fan, it may well be too late as bank holidays, a sudden and drastic US currency devaluation…and for those in the US…a potential gold/silver confiscation?...growing civil disobedience, huge drop in the standard of living…and hyper inflation the result of “quantitative easing”…and a host of other unwelcome torments cast a gloom upon the U.S. The misfortune of many will all add up to the fortune of few as incredible prices for the precious metals and their stocks become invaluable.

If SFMI, as an example, has even half of what we anticipate it has, both above ground and in its mines, can you imagine what it will be worth? There are those who would like you to think otherwise. We have a choice to make….wise or otherwise?

As an addendum, I do not wish to appear smug. I believe those who become quite well heeled with their coming fortunes will have some weighty considerations to resolve with respect to helping those many others that will become very needy…even friends and relatives….and our friends in the animal world. Even minimal wealth will bear some incredible conscience and doing what is right. We are heading into some extremely challenging times and many will have to rise to the occasion. In my opinion, this is all worth thinking about now.