Tuesday, May 26, 2009

Talk of Downgrade in US Credit Rating = Gold Rally

There's been a bit of speculation lately about the United States potentially losing its AAA credit rating after news that Standard & Poor's altered its outlook in the United Kingdom to "negative" from "stable."

Both analysts and the White House don't seem to think this is a likely scenario, but the best bet is to look at which assets have no liability against them. If U.S. can no longer issue money, people will not only flock to gold, but also those assets that are traded like oil and metals. Watch the Long Platinum ETN (PTM), the SPDR Gold Trust ETF (GLD) and the Gold BUGS Index (HUI).

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