Veteran Newsletter Writer Richard Russell Endorses Gold-Manipulation Thesis

As reported by Peter Brimelow in his latest MarketWatch column, those goldbugs who believe that gold is manipulated downwards now have a widely-known ally: Richard Russell.

Russell is a long-time gold bug, but for traditional inflationary reasons. He resisted the new argument, developed by writers associated with Bill Murphy’s Le Metropole Cafe website, that the gold price is manipulated by a Washington-Wall Street alliance.

But in his last post last week, on Thursday, Russell wrote:

“The desperate battle to keep gold below 1500 continues. I watched the erratic action of gold near yesterday’s close. I’m fascinated to see whether June gold can close above 1500 or whether the anti-gold contingent can manage to knock gold down (again) below 1500. The action is now so blatant that it literally screams of manipulation. At its high yesterday, June gold sold at 1506.50. At yesterday’s close, June gold was trading at 1498.10. It’s almost embarrassing to watch the action. What we’re seeing is the anti-gold crowd and the manipulators vs. the great primary trend of gold.”...

Russell is the best-known Dow Theorist in the market-letter crowd, and one of the best known period. A long-time gold bull, he believes that any manipulation attempt is doomed to failure because the gold bull will swamp it. Despite the recent publicity gold's enjoyed, he thinks it's still underowened. The average Joe knows about gold, but hasn't pulled the trigger yet.