Richard Russell has seen a thing or two in the years he has been writing about the markets.  He began writing a newsletter called The Dow Theory Letters in 1958.  It is now the oldest financial publication written continually by one person.

Richard not only has the depth of experience to understand what makes markets work the way they do – he also does a great job of explaining the investor psychology at various stages in the market cycles.

His latest comments are fairly short, but provide a very interesting perspective.  Click here to read what he has to say: Richard Russell comments

Below is the price of gold on the last business day of each year since 2000.  Cumulatively, gold is up over 400% in the last 10 years.  Despite this, most people in North America have no exposure to gold in their portfolios and it only represents about 1% of investments in the world.  In 1980, when inflation was raging, gold was considered a core holding and represented 20% of the investments in the world.

2000 -  $273.60                                                                                                                    2001 -  $279.00                                                                                                                     2002 -  $348.20                                                                                                                    2003 -  $416.10                                                                                                                      2004 -  $438.40                                                                                                                    2005 -  $518.90                                                                                                                     2006 -  $638.00                                                                                                                    2007 -  $838.00                                                                                                                     2008 -  $889.00                                                                                                                    2009 -  $1,096.50                                                                                                                 2010 -  $1,421.40                                                                                                                  2011 -  $1,531.00                                                                                                                  2012 -  $1,675.00

Some analysts have been calling a “top” in the gold market since 2005.  But gold has continued upward year after year as central banks in the US, Europe and Japan continue to print money - in the trillions - to support the economy.

Gold cannot be printed.  Even if the world continues to plod along and there is no major debt or currency crisis, gold maintains its purchasing power in a world where paper money is regularly being debased.

We continue to believe everyone should have at least some exposure to gold in their portfolios.