Gold and Silver Bugs in Control as US Dollar Collapses
Another week and another new high for gold and silver. The rationale is the collapsing US dollar and concern over the Fiat currencies. The European debt crisis also has people wary of the Euro.
Hence gold rose above $1,570 an ounce to a fifth consecutive record high as the dollar fell to a new three-year low on as the U.S. Federal Reserve maintains easy money policy.
The US Obama Administration continues to worry investors with their oblivious to the costs of living in the US. The ironic thing is this affects those voted the administration in more than anyone.
Silver sits near the previous session’s record high of $49.51 an ounce. Last time we were here was when those naughty Hunt Brothers cornered the silver market thirty years ago.
Silver is up around 30 percent in April, its largest monthly gain since April 1987, Gold is posted its biggest monthly gain since November 2010 when gold bugs last went on a buying rampage..
There have been futile attempts to slow the precious metals run higher such as CME upping margins on Comex 5000 Silver and large players trying to game the options markets. The reality is Obama and Bernanke in particular have for some inexplicable reason tried to denounce inflation when it is all around.
The result is a flock to safe havens like gold and silver. No doubt speculators have been adding to bullish gold bets and many commodity advisers warn of crash, but the herd is still buying gold.
Will the run last or is this just another commodity bubble?
Share your thoughts below.
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