Heavy Metal Rocks While the Dollar Reels

Precious metal ETF buys have less to do with the wedding season in India than they do with the US Government’s cure-all for every problem: Spend dollars that have to be printed, not gathered from taxation.

Despite the fact that it doesn’t seem to be getting either more Swine Flue vaccine on the scene or more mortgage or small business credit available, the trillion-dollar pace of deficit persists.

Perish the idea that it be called inflation, but prices of many things keep going up, including ETFs denominated in dollars.

Expectations of market-makers for ETFs holding either precious metals or stocks of companies that mine the stuff are on the rise, too. That makes several ETFs attractive, odds-on buys at this point.

Most appealing is IAU, the COMEX Gold Trust i-Shares, where volume market-makers see the potential for upside gain of over +10% in the next 3 months, compared to a downside exposure of less than one-quarter of that. Their batting average has been very good, with higher prices following forecasts like the present 78% of the time.

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