Gold and silver are soaring higher again this morning. These precious metals are no longer rising because of the declining U.S. Dollar Index they are rising because they are now being viewed as the only true form of currency against the fiat money systems that are used by most central banks. This morning December spot gold is trading higher by 14.00 points to a new all time high at $1418.00 an ounce. Silver is also trading higher by 0.72 cents to $28.39 which is also a new high for the year.
The rise in the precious metals sector is telling us that the central banks around the world have lost credibility. That includes the central bank of the United State, The Federal Reserve. Since 2001 the U.S. Dollar Index has declined lower by nearly 40.0 percent and many other nations are starting to voice their disbelief and disapproval for the Federal Reserve Bank’s recent action regarding QE-2(money printing).
Most other commodities are all rising and making new yearly highs including cotton, copper, oil, and others. This rally in commodities reminds me of July 2008 when oil soared to $147.00 a barrel. However, the outcome from that point was not very pretty as oil and the economy collapsed shortly after that top. This time almost every commodity is soaring to euphoric levels. Plain and simple gold and silver are telling the world that inflation is here and the Federal Reserve has induced it. This story should not have a pretty ending.
