Leveraging Up on Precious Metals Ahead of Fed Meeting

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...If the Fed stays in line and it does as expected, their actions (“inaction” would probably be more appropriate) could propel one sector 30% to 40% higher in a matter of days. In this case, it has happened before...After the last Fed meeting, precious metals prices and shares of gold and silver miners stocks soared...Andrew Mickey

The Fed will meet once again today. No one knows for sure what the outcome will be, but considering the current state of the markets, they’re not likely to make any drastic moves.

If the Fed stays in line and it does as expected, their actions (“inaction” would probably be more appropriate) could propel one sector 30% to 40% higher in a matter of days. In this case, it has happened before.

After the last Fed meeting, precious metals prices and shares of gold and silver miners stocks soared...

When the Fed signaled inflation is not the top priority…the world ran for protection. At the time, that protection was in silver and gold. On Tuesday, when the Fed stands on the sidelines as they did last time, the protection seeking herd will move once again to silver and gold.

Whether that’s what the Fed should do or not isn’t really important here. The key is they won’t do anything. And that’s going to get the gold bugs howling again...

After the last Fed meeting, silver and gold made strong moves. The bigs moves, however, were in the leveraged plays. For instance, both Silver Wheaton and Goldcorp scored gains of around 18% in the week that followed the last Fed meeting.

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