Stock Preacher

Former Federal Reserve Governor Lyle Gramley hinted on Canadian television last week that a big upward revaluation of Gold may figure heavily in the Fed’s attempt to rescue the US economy.

This comment suggests that the issue is in the Fed’s hands, but if the shorts on Comex get squeezed and the Comex defaults on physical delivery, the market, not the Fed, will decide the true value of Gold.

So, with that hint in the air, investors should take physical delivery of their Gold and not leverage positions. Do this and you will put more pressure on the shorts who have sold Gold that they are unable to deliver. Whether there is a massive squeeze on the Comex in December or February is irrelevant.

The Gold rush is on.

When Gold becomes unavailable, prices will have to go up by multiples, and the hammered mining sector will reach new highs. Thus, when Gold is not available in bullion form, the next best thing for investors will be companies that mine it.

Popularity: 51% [?]

The Federal Reserve may today reduce its main interest rate to the lowest level on record and prepare for one of the boldest experiments in its 94-year history: using its balance sheet as the key tool for monetary policy. The FOMC is likely to cut its benchmark rate in half, to 0.5%, according to forecasts in a Bloomberg survey. The central bank may also signal plans to channel credit to businesses and consumers by further enlarging its $2.26 trillion of assets.

Popularity: 48% [?]

The Federal Reserve increased support for international insurer American International Group Inc to $150B today after an initial rescue attempt failed to stop huge losses. The new plan adds $27 billion more to the rescue package. AIG shares rose 24 percent to $2.62 in pre-market action.

Popularity: unranked [?]