Gold is a buy here - Just added. Edmund Moy, chief strategist with Morgan Gold in Irvine, Calif., and a former director of the U.S. Mint, has an interesting theory. Moy thinks that gold should continue to climb as long as the debt ceiling gets raised, and that there is even a pretty simple formula for how the price of gold tends to track the level of the debt ceiling. Just move the decimal point 10 places to the left.
To wit, Moy notes that the debt ceiling limit currently stands at $16,394,000,000,000. Gold is now around $1,672 an ounce. If Congress eventually agrees to raise the debt ceiling -- for argument's sake, let's say it gets bumped to near $18 trillion, then gold should start to move toward $1,800 an ounce.
Sentiment: Buy