Wednesday, October 31, 2007

The Precious

Long time readers know that I refer to my Gold investments as "The Precious" in honor of Gollum from Lord of the Rings. Well, the Federal Reserve cut interest rates today, and that sent Gold & Silver prices spiking. Gold closed near $795 an ounce and Silver at $14.50 an ounce.

I'm not really sure why the Fed is cutting rates when we are a couple hundred points shy of an all-time high on the Dow Jones Industrial avg. I thought you were supposed to cut rates when the economy was slowing, and that when the economy started slowing, the stock market went down. Hmmm.

Seems like the Fed is being irresponsible to me and focused more on what their core constituents (banks) want - and less about the long-term welfare of the economy and general public. But what do I know...