Near Record Short Interest

Short Interest (the amount of shares shorted on the NYSE) is at near record levels due to continued bets against large financial firms such as Fannie Mae, Freddie Mac, and Washington Mutual.

Until the financial contagion is resolved, short interest will continue to remain at high levels.

U.S. Mint Suspends Sale of Gold Coins

There has been unprecented demand for gold coins recently as gold prices have corrected 20% from near $1,000 per oz. down to $800 per oz. creating a shortage of coins for sale by the U.S. Mint. See link below:

http://www.reuters.com/article/businessNews/idUSN2140103820080821?feedType=RSS&feedName=businessNews&sp=true

This demand is very positive for gold and other metals prices. My favorite names in the metals space include Freeport McMoran (FCX), Yamana Gold (AUY), and Pan American Silver (PAAS).