With gold still consolidating gains, the Godfather of newsletter writers Richard Russell in his commentaries from this past week stated, “I listened to Kitco's Nadler on the Bloomberg channel this morning. He's been bearish on gold for months, and I thought he sounded like a know-nothing fool today. Why didn't Bloomberg interview someone who's been bullish and right about gold.”

Richard Russell continues:

“What's with the Wall Street Journal and gold? In the Dec. 6 paper, the front page blares, “ETFs and Gold.” So I turned to the gold article which included a rare error in its headline,"Resisting Gold's Glister." I assumed they meant gold's "Glitter." The article was written by a Tim Medley, a random guy I had never heard of. Mr. Medley's main half-assed complaint about gold is that it is too expensive today and therefore dangerous in that it may correct. Worse, claims Medley, there is a current "euphoria" regarding gold. Too many people are bullish on gold. Therefore, gold is about to lose its "glister."

My question -- Are the editors of the Journal short of gold? Or are they short of brains? This article denigrating gold bordered on sheer stupidity.

...But the latest is that rising "right shoulder", which took gold to a new high. Then we see the two day swoon, down to the rising trendline. If the trendline holds, gold will take on a bullish look...If the latest rising trendline holds, gold will look stronger than ever. Whew! One way or another, old-timers like Richard Russell will hold on to their gold.

...Conclusion -- The gold and precious metals universe is probably the biggest and most profitable bull market that most of us will see in our lifetime. Suffice it to say, my older subscribers who have moved into the gold bull market with both feet are now sitting with immense paper profits. And I continue to remind my subscribers that the third or speculative phase of the precious metals bull market has not yet arrived.

Gold possesses a singular property shared by no other item. A gold bull market is fed by both fear and greed. The fear quotient is obvious -- the fear is seen in the question, "Will sovereign debt ever be paid off, and will fiat currencies even survive?" The greed quotient arrives as the precious metals market heats up and gains publicity. In due time, literally everyone will want to join and ride the gold bull.

The questions I am most frequently asked are (1) Should I trade the gold bull market? The Russell answer to this question is “NO. Just add to your positions on corrections.”

(2) I have huge profits in silver and gold. Should I take my profits? The Russell answer to the question is ‘No. The bull market is not over.’

(3) Is it too late to enter the precious metals bull market? Again, the Russell answer is “No. We have yet to see the universal excitement that I expect to see before the gold bull market breathes its last.”