Plummeting US Dollar: The Age of America is Over

Today the Swiss franc made yet another new high against the super dollar, as it has been doing for 120 days. What you are reading in the graphs is less and less of the foreign currency that one dollar can buy. Of course, gold and silver also consistently hit new highs.

Ben Bernacke says QE will end in June, but he is either delusional or lying. If the Fed stops monetizing Treasury debt, how will the $1.5-trillion-dollar annual operating deficit of the US government be financed? Are Americans, who are broke, suffering 22% unemployment, foreclosures on their homes and running out of money before the end of the month, as Wal-Mart's CEO recently stated, going to finance a 1.5-trillion annual government deficit? If you think so, I have a bridge to sell in Brooklyn.

The combined trade surpluses of China, OPEC, Japan and Russia are insufficient to finance more than one-third of the US budget deficit, assuming these countries are willing, in the face of the evidence, to continue to acquire US debt.

That means, even under the most optimistic scenario, that the Federal Reserve will have to purchase annually $1-trillion in Treasury debt.

In other words, the US, the great Super Power over-filled with hubris, has outdone the fiscal irresponsibility of third-world banana republics. Superpower America is financing itself by printing money. 

Washington, by conducting open-ended wars of aggression against non-puppet states, by giving its approval to the off-shoring of US jobs and thereby US GDP, and by saddling bankrupt taxpayers with $1-trillion in non-recourse loans to mega-rich people in order that the richest and most favored could borrow from the Fed at nearly zero rates of interest hundreds of millions of dollars to buy under-valued student loans, credit card debt, mortgages, whatever, and have any profits from the purchase of under-valued assets put in their bank account and any losses put on the Federal Reserve's books. Obviously, the US economy is a scheme run by the rich for the rich.

In this scheme to impoverish Americans for the benefit of the mega-rich, the Federal reserve actually gave hundreds of millions of dollars to the wives of New York investment bank CEOs in non-resource loans. The already rich wives bought up under-valued debt and made a killing. The wives had no risk whatsoever, because if their investments failed, it went onto the Federal Reserve's books, not on the wives' entity. See Matt Taibbi's The Real Housewives of Wall Street in Rolling Stone magazine.

As the International Monetary Fund said, recently, "the Age of America is Over."

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Gold on Track to Reach $1860 – $1920 by Mid 2011

The Golden Parabola is continuing to follow the cycle of the 70's Gold Bull as the U.S. Dollar is further devalued against Gold to balance the budget of the United States at this point in the "paper currency cycle" where Global Competitive Currency Devaluations rule. As discussed in a recent editorial this point in the cycle suggests that Gold will soon enter into a more aggressive higher rise in price as it starts to project the higher Vth Wave characteristics of this new Golden Parabola.

Much of the debt that must be devalued by the U.S. government has not yet been moved to the balance sheet of the U.S. Government. As such, from a fundamental standpoint, we won't know the true height that Gold will achieve until that has been accomplished although we can gauge the progress of today's Gold Bull off of the 70's Gold Bull to a large extent.

Price Inflation and the Price of Gold

We saw price inflation, in general, track Gold in the late 70's, although much of the rise in general price inflation tends to lag the rise in the price of Gold because Gold's rise is directly related to the rise in Dollar Inflation that eventually creates general price inflation.  General price inflation lags the rise in the price of Gold since it takes time for Dollar Inflation to work its way through the pricing environment of the various markets.  Thus, not only are Gold and Silver great hedges against price inflation, but owning Gold and Silver is a great way to pre-empt the ravages of price inflation that are headed our way over the coming years at this point in the paper currency cycle.

CONCLUSION: Current Golden Parabola on Track

The current Golden Parabola has been tracking the Golden Parabola of the 1970's almost perfectly for over a decade.  Today's Golden Parabola is driven by the parabolic growth of the U.S. Dollar Inflation in response to the massive backdrop of debt that exists, today.  We can project price targets as the Golden Parabola grows, but its final height will be determined by the necessary price level for Gold to balance the U.S. budget once all of the liabilities of the U.S. are eventually placed on its balance sheet.  Many of those liabilities will not be transferred to the U.S. balance sheet until late in the Golden Parabola's rise in an attempt to compress the level of discomfort in terms of time that the Dollar Devaluation will create.  Thus, it appears that at this time the terms "Bubble" and "Gold" do not belong in the same sentence.

If you take a look at the chart for Silver you will start to get an inkling of what is to come for theGold price.  It appears that we are just entering the higher sloped rise in Gold that has already begun in Silver; and Silver still has a much higher path to climb into the future.  There is no doubt that Gold has made a nice run since the original Golden Parabola article, but I expect the run to continue into mid-year.

PM Stocks

As a quick note on the PM Stock Indices, this analogous break-out of Gold ushered in higher valuations for the large cap PM stocks in the late 70's.  The PM stocks tend to be re-valued higher in short dynamic spurts, and I am looking for one of those spurts higher for the PM Stock Sector to commence with this break-out in Gold.  I hope to return with an article on the PM Stock Indices in a few days.

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Advantages of Silver Over Gold

The average person can't afford to buy gold, so it is most suitable for wealthy people for investment and central banks.

With silver being so much cheaper, the average person can go to his local coin dealer and buy some.

The advantages of silver over gold as an inflation hedge are numerous and need to be considered:

1. The silver market is much smaller, and it doesn't take as much money moving into silver as an investment to move the market up. Silver has outperformed gold dramatically over the last few years, going from $3 an ounce to over $40 an ounce.
2. Silver is also a very important industrial metal with over 3,000 industrial uses.
3. The government has never seized silver, although they have seized gold. If that worries you (it doesn't worry me much), you would feel safer with silver rather than gold.
4. The government actually has no stockpile of silver to unload. There is now more gold above ground than silver because of the silver industrial usage.
5. I look upon silver as money. Throughout history more silver has been used more for money than gold. Historically, silver coins became the common denominator for money in more places and more times than gold.

If you are wealthy and can afford to buy some gold, be my guest. I think you will do just fine. However, silver will outperform gold about three to one. When I receive income from my business, I set aside enough cash to take care of my normal business affairs because paper money is still a means of exchange, although it is no longer a store of value. As a means of exchange, you can conduct your normal affairs. If I have any left over, I go to my local coin dealer and buy silver.

What kind of silver should you buy?

There are American silver eagles, junk silver, and foreign silver coins that can be bought from anycoin dealer, and they are also easy to sell. The price fluctuates not only daily, but hourly. So there is always a place you could sell it.

But why would you want to sell it if the government is still inflating the currency? Hang on to yoursilver.

How far will silver go? Darned if I know; that's above my pay grade. All I know is that we are in a bull market, and we ain't seen nothin yet.
I don't expect it to retreat. When I buy silver, I am just buying another form of money that I believe will prevail over paper.

Where will you keep it? Any place that thieves won't be able to find it or get to it. Concealment is probably the best strategy. I wouldn't keep it in my bank safe-deposit box, just in case the government decided to change its position on silver. Right now, silver is just treated as another commodity.

The government is even manufacturing and selling silver coins. But they have no stockpile, so they have to buy on the open market just like you do.

There are more people in the world who can afford to buy some silver than can afford to buy gold; thus, smaller volume will move the market up and up, and up.

Who cares about that? I don't care if it goes up. I won't sell it any time soon. This bull market will not end until the world changes its attitudes towards paper money. There is no sign of that.

Some day you might want to give it to your children or build your estate for them to inherit it. They will thank you and call your name blessed.

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Currency Dead End Paradoxes, The Besieged U.S. Dollar

Several very important currency effects are at work. Most economists are either silent on the factors or wrong footed on the dynamic. That is not surprising since they have been incorrectly analyzing, interpreting, and forecasting the financial crisis as it built up in 2005 and 2006, and as it exploded in 2007 and 2008 to surprise almost all of them, even as it has failed to recover in 2009 and 2010 in contrary fashion to their deceptive rosy positions. The major currencies must be examined for some key paradoxes. As the monetary system crumbles into its final phase, the foundation under which the major currencies stand, trade, and change is breaking down. Refer to the sovereign debt structure, overly burdened by runaway government debt.

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Silver Parabolic Move Was 5 Times Faster in 1980 than Today

This essay will attempt to address the question of whether or not silver prices are in a bubble, or possibly may be turning into a bubble and if so what trading strategies may be suited to the situation. This article will hopefully provide another string to the readers bow in attempting to identify bubbles and being able to protect one's portfolio and even potentially profit from them. For the record we feel it is prudent to state our view upfront, we do not think silver is in a bubble at this point in time. However we think that it is likely that it will become a bubble in the future, but we cannot say when or at what price.

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Charting the Course to $7 Gas

J. Kevin Meaders writes: Let's go back to the beginning of the current economic crisis — yes, it is still a crisis for many millions of Americans who lost their jobs, ruined their credit, filed for bankruptcy, lost their homes, and lost their lifestyle. Shanty towns have popped up all over America, though rarely gaining media exposure.

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Silver Forecast $52 to $56 by Mid 2011 Update

Back on February 18th I wrote an editorial showing that Silver could rocket up to $52 to $56 by mid-year.  At the time of the writing Silver was sitting a little above $32 on the price chart.  The original chart work was based off of the fractal chart work I do with Silver from previous fractal time periods.  So far the rise in Silver appears to be right on track for our expected targets to be approached into mid-year.  I will post a link to the original article, below, for your perusal.

Silver has entered the more parabolic path of this historic PM Bull very much like it did back in the late 70's.  If you want to get a general idea of how far Silver still had to run back in the 19780's, you can look at the original article link, above, where I posted a long-term chart of Silver back to the 70's.  On the 70's chart of Silver in that article, I placed a circle on the analogous place for Silver in the 70's compared to where Silver was on the chart when I wrote the original public article.  

To some extent, Silver is like the canary in the coal mine when it comes to the Vth Wave advance of the Precious Metals Bull.  The price of Silver acted the same way in the 1970's PM Bull Market since it takes a lot less speculative money to drive the price of Silver parabolic than it does for Gold.  Don't forget the many times when Silver has led a charge in the PM sector to new highs only to be left like Wiley Coyote running into thin air off of a cliff.  

Obviously, something is different "this time."  This time Silver has run wild on the upside, and Gold is following in its footsteps.   In fact, smaller investors can help to contribute to the advance into Wave V for Silver since it is easier for them to accumulate a larger amount of Silver with its lower price.  This is one point in a market cycle where what many call "Smart Money" can be out-run by smaller investors.

The early run by Silver into Vth Wave Chart Metrics, or phase transition into the true Vth Wave Channel, is the early recognition point for all of the markets that the Vth Wave devaluation in the U.S. Dollar is at hand.  Markets are discounting mechanisms, and the move of Silver into the Vth Wave Channel leads Gold into its own Vth Wave Channel slope of rise by just an eyelash on the long-term charts.

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Is gold money the safest in the world

The world is facing so many economic problems that its descent is a continuous cycle. The declension of many economic powers has made many people such as investors look for other ways to fight inflation that these economic complications always throw at us.

Many people have turned to gold and silver investments as a means to secure their finances, because of the many benefits and advantage that investing in these precious metals offer to people, and the fact that the value of these metals do not go down to zero.

With economic capitulation comes the decrease in the value of the paper currency. Not only does it greatly affect the rate of the currency, but it also affects a lot of other financial factors such as stock market worth, interest rates, real estate prices and inflation, which then leads these factors to react the same way, thus, diminishing all of their values.

These economic influences do not make up the component that affects the value of the precious metals the same way. It work the other way around, meaning, their value increases. The reason behind this is that gold and silver do not change their value no matter what happens to the economy. In fact, their value might even increase.

We all know that one of the largest problems that an economy faces is the danger of the diminishing buying power of their paper currency. It has also been reported that there will still be a continuous decrease in the value of the dollar, and with this finance aspect being said, the world should not depend alone on this currency.

The business of gold and silver mainly deals with these economic sources of difficulty, thus, providing a stable assurance and insurance against the main causes of inflation.

The power of the paper currency to buy is deeply impaired by these tough times, thus, possession of precious metals are ways to combat the fluctuations that they can bring about. Investing in them contributes to a lowered risk of your overall investments, thus owning precious metals in different forms such as bullion, coins and bars greatly increases the protection of your financial assets and features.

This is also the preferred investment of most businesses and large companies. It is easier to maintain the value of gold and silver than keeping properties and monetary currencies as a back up. The latter is always at risk at losing its value, but gold and silver will stay valuable.

If you are planning to buy or have a plan in investing in these precious materials, be it in an aggressive approach or a more conservative one, they can represent a vital portion of your allocation when it comes to owning assets.

A secure foundation in your finance assets can be greatly influenced by these exquisite metals, and having an assurance in the stability of your financial features means protection against the ever-continuing fluctuation of the economy.

However, to make it a stable investment, you have to learn about gold and silver investments. No matter how much you have in your possession, if you are unaware of how to deal with them, your investment efforts might just go to waste.

Having possession of these precious metals is one of the best ways to fight inflation. Because of their natural innate capability as a "hedge against inflation," these proven valuables become your real money in the real world.

They are your safest way to ensure and protect you against the many hard times that the future holds. No matter what how deep the collapse and the failure of the legal tender will experience,gold and silver will stay, thus assuring you from any financial loss that the currency might provide.
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What's Behind the Crude Oil Spike to $112 and Why There's More to Come

Kent Moors, Ph.D. writes:
Crude oil prices rose for the third straight day yesterday (Thursday) – with more of the same to come.
West Texas Intermediate (WTI) crude for June delivery rose to $111.50 a barrel on the New York Mercantile Exchange, and traded as high as $112.48, the highest intraday price since April 11. Crude prices are up by a full third so far this year.

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Silver price rising three-times as fast as gold

Over the past three days the price of silver has jumped from $42 to $46 an ounce, while gold has moved up from $1,480 to $1,507 at the time of writing. That is approximately a six per cent gain forsilver and two per cent for gold.

The silver price is therefore rising at three times the speed of the gold price. Gold and silver bugs know this relationship well.

Gold-to-silver ratio

The ratio of gold-to-silver closes up as precious metals become more popular. When this website's editor published a book on 'The Road to $5,000 Gold' a year ago, the ratio was around 80 ounces of silver to buy one ounce of gold.

Today that same ratio is down to 33. In that timeframe gold has jumped from $1,000 an ounce to over $1,500, or roughly 50 per cent. Silver is up from $17 an ounce to $46, or 270 per cent.

It is a very significant difference, and this ratio can fall still further. The centuries' old ratio of gold-to-silver is 12-16 depending on which authority you consult, so there is the potential for silver to deliver three times more gain in value than gold if we go back to this past ratio.

The law of mean reversion suggests that is very likely, particularly if the upward momentum of precious metals continues.

In the last edition of the ArabianMoney newsletter we heard from Swiss investment manager Rolf Nef who advised selling your home and buying silver back in 2007 precisely because of this upside potential and the negative outlook for real estate.

$320 silver?

However, the profit to be gained in transferring wealth into silver still looks outstanding. ArabianMoney has a forecast for $5,000 gold and $320 silver within the next few years.

This is most likely the investment opportunity of a generation and yet silver is still barely mentioned in the financial press. Gold gets the headlines, and the silver price always looks a bit of a poor relation compared to its flashy cousin.

But make no mistake silver is the place for the patient, value investor in this commodities boom. Nothing goes up in a straight line forever, and that is where patience is always a virtue in investment. But if you just stick in the best performing asset class for a period then you are not going to go far wrong.

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April 20, 2011: 2011 Proof Gold Eagles, Uncertified Coins, Gold Price Above $1500

Welcome to Coin Update!

We're back to bring you another round up of coin collecting news and articles from around the internet! First, the United States Mint will soon begin sales of the 2011 AmericanGold Eagle proof coins, in four individual options and a multi-coin set. Also, the latest US Mint sales report, questionably graded uncertified coins, bullion coinprograms, fresh coins, Edmund Moy's new job, Bank of Japan, gold above $1500 per ounce, silver coin values, swapping silver for gold, and notable auctions. On to the links…

Tomorrow, the US Mint will begin sales of the 2011 ProofGold Eagles. The offering doesn't seem to be generating the same amount of anticipation as last year's release.

High precious metals prices have resulted in numerous suspensions, price increases, and sell outs for US Mint numismatic products, as discussed in the latest weekly sales report.

On CoinWeek, Greg Reynolds discusses the topic of questionably graded uncertified coins. He focuses on such coins advertised in a widely read print coin publication.

Earlier this month, there was House subcommittee examining the bullion coin programs of the United States Mint, although no Mint representatives were present to testify. The subcommittee chairman Rep. Ron Paul says the Mint will get its turn to testify.

What is a "fresh coin"? Doug Winter explores various scenarios and gives his opinions on the subject.

This article about the "Hackney Hoard" of 80 gold double eagles found in a garden includes a cool picture of the find in an old jar.

What is former US Mint Director Edmund Moy up to nowadays? Here's a press release (with link to a video) discussing some of his recent activities as Vice President of L&L Energy.

The Bank of Japan has exchanged 1.05 billion yen in bills and coins damaged in the earthquake and tsunami. Exchanges are expected to increase further.

The New York Times reports on the gold price breaking the $1,500 mark, with a long list of factors supporting the rise in precious metals prices.

With the rise in the price of silver from $5 to more than $40 per ounce, the values of some silvercoins might surprise. A silver war nickel is now worth more than $2 and 40% silver half dollarsare worth more than $6.

Following silver's recent out performance of gold, is it time to swap physical silver for gold? Patrick Heller provides his answer to the question.

And now for some notable auctions. First, a very interesting auction for a "possibly unique" Seated Liberty Dollar in a GSA softpack. In 1976, Numismatic News called it a "packaging error" since the GSA sale only advertised Morgan and Peace Dollars.

Next, the popular key date 1909-S VDB Lincoln Cent graded PCGS MS65RD with CAC verification in a PCGS secure shield holder.

Last, a group of 1000 Barber Silver Quarters.

That's it for this update. Have a great evening!

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Devaluation of the Words on the Dollar Bill

The 1929 series of Federal Reserve notes said:

"Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank." This was just like the Silver Certificate, which was guaranteed by a dollar in silver that was on deposit.

The 1934 series of notes said:
"This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank."

The 1950 series:
Kept the same wording, but reduced it to three lines, and reduced the size of the type.

The 1953 series:
The wording was totally removed, although the bottom portion contained a promise to "pay the bearer on demand."

The 1963 series:
Even this wording was removed, and the dollar became nothing more than worthless pieces of paper because they no longer met the legal requirements of a note, which must list an issuing bank, and amount payable, a payee or "bearer," and a time for payment or "on demand."

After March, 1964, silver certificates were no longer convertible to silver dollars; and in March, 1968, near the conclusion of the Johnson Administration, silver backing of the dollar was removed.
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April 18, 2011: 2011 ATB Quarter Set, Impact of $40 Silver, Liberty Dollars Legality

We're back for another round up of coin collecting news and articles from around the internet! The next numismaticproduct release form the United States Mint will feature the 2011 America the Beautiful Quarters. Also, implications of the price of silver above $40 per ounce, billion dollar goldbar delivery, Sacagawea Dollar model, coin furniture, Liberty Dollars, book reviewing, selling a coin collection,coin hoard discovery to be returned to descendants, and notable auctions. On to the links…

Tomorrow the US Mint will begin sales of the 2011 America the Beautiful Quarter Uncirculated Coin Set. These coins carry a brilliant finish, as previously issued in the full 2011 Mint Set.

Implications of silver prices above $40 per ounce from Steve Roach, who discusses higher prices for collecting areas such as silver proof sets and commemoratives. Another article fromNumismatic News, about some people selling silver coins and silver wares.

The University of Texas Investment Management Co. took delivery of nearly $1 billion wroth of goldbars, seeking "to protect against demand for the metal overwhelming supply."

Randy'L Teton, the model for the Sacagawea Dollar, recently spoke at a rotary club meeting. She comments on the experience and what she is doing now.

Here's an article about an artist who designs and builds furniture made out of coins. One of his couches made with 6,800 nickels sold fro $105,000 two years ago.

Following the conviction of Bernard von NotHaus, are the Liberty Dollars he created legal to collect? According to this CoinWorld article, they are legal, as long as there is no attempt to pass them as current money.

Coin Collectors Blog has a book review for Coins: Questions & Answers.

An article from a financial planner that discusses advising collector heir's who want to sell a coincollection. The first issue is to determine whether it is an accumulation or a collection.

CoinsWeekly's article of the week is about the Hamerani family of medallists.

A jar of 80 gold double eagles found three years ago in London is expected to be returned to the descendants of the family who hid them.

And now for some notable auctions. First, a collection of 1986-2010 Proof Silver Eagles gradedPCGS PR69DCAM in a display album. All regular issues are included except for the 2009, which was canceled.

Next, a 1927 Saint Gaudens Double Eagle graded PCGS MS66+ in a new secure plus holder.

Last, a modern conditional rarity. It's a 1978-S Eisenhower Dollar NGC PF 70 Ultra Cameo. Out of all the proof Eisenhower Dollars graded by the company, only three have been awarded this top grade.

That's it for another update. Have a great evening!

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What Is Silver Screaming About

The CURRENT SURGE in bids to buy silver might seem dramatic, but it's more measured by far – to date, at least – than the true silver bubble of Sept. 1979 to Jan. 1980. Even so, you may as well call this a record price. In real terms, as Matt Turner at Mitsubishi told me this week, one ounce ofsilver briefly rose above 40 of today's US Dollars per ounce in 1864, when the American Civil War neared its climax. In nominal Dollars, the Hunt brothers' multi-billion-dollar corner only saw it more highly priced on 5 trading days in Jan. 1980. And while US investors waiting to buy silver are also still waiting for it to record a new intra-day high, it's already broken new ground against the British Pound and for most of the Eurozone, too.

The cause? Gold investors have long tried to explain how the metal is "telling us" something. "First warning" of the looming financial crisis, said Marc Faber in his Gloom, Boom & Doom Report of Sept. '07, was when "the price of gold more than doubled in nominal terms and against the Dow Jones Industrial Average [because of] ultra-expansionary US monetary policies with artificially low interest rates."

In which case, and with global interest rates further below zero today after inflation than at any time since 1980, what in the hell is silver telling us now?

"TIPS pay a lower rate of interest than regular Treasuries," explained Bloomberg News when the yield offered by 5-year Treasury Inflation Protected Securities briefly dipped below zero (and $20silver broke a 28-year high) back in March 2008.

"[That's] because their principal rises in tandem with a version of the consumer price index which includes food and energy prices. Rising demand for TIPS [which pushes up prices and so pushes down the nominal yield] indicates investors expect the inflation adjustment to make up the difference."

What great expectations TIPS buyers must have of Uncle Sam's "inflation adjustment" today! They're buying 5-year index-linked bonds with a nominal yield of minus 0.6%, anticipating a full 2.8% per year fillip from Washington when compared with the annual yield now offered by conventional 5-year bonds. And what greater hopes still must the new rush of silver investment hold…rejecting TIPS in favor of metal, and breaking silver's tight connection with both gold prices and TIPS yields as our chart above shows.

Note the point at which silver breaks higher – right when Fed chairman Bernanke vowed to begin QEII in summer last year. That a fast-growing nugget of the world's private wealth is fearful of the result is clear. That silver looks a turbo-charged play is clearer still. Because as an industrial as well as monetary metal, silver is exposed to strong economic growth – as well as loose central-bank policy – in a way that its cousin, gold bullion, isn't. You could point to 2010′s record levels of Indian and Chinese gold demand coming off their continued economic booms, but silver Asia'ssilver investment demand is surging faster still. And the aim of all this easy money, remember, is to keep GDP stoked, whether in Beijing, Washington, Frankfurt or London.

Little wonder then that Chinese, US, Eurozone and UK inflation is rising sharply. And so no wonder either then that…

• By value, London's wholesale bullion market last month saw silver volumes jump to one-sixth the daily turnover of gold plus silver, according to the LBMA's new stats, released to members today. That's a 13-year high. In raw dollars, silver turnover set new all-time records for the second month running.
• By number, New York's Comex saw the volume of silver futures contracts overtake the volume of gold futures on Monday and Tuesday this week. By value, silver trading rose to one-seventh of total gold and silver volumes, up from a seventeenth just a month ago.
• ETF Securities say their silver exchange-traded products saw "more flows than any other individual commodity ETP" in the first quarter
• Here at BullionVault – the world's largest gold ownership service online – our customers have pushed silver trading up from 22% of daily volumes by value in January to 27% in both March and so far in April.

 

There's no bull market like a silver bull market, in short – just ask the Hunt brothers ahead of their bankruptcy, eight years after their corner blew up with the big inflation-fueled 1970s' bull market. Double-digit Fed interest rates popped the bubble back then (plus a good dose of anti-speculative action by regulators and the exchanges, otherwise known as "saving the system" of course. It was sparked in turn by the Hunt brothers' own naked greed, otherwise known to them as "inflation protection"). The most recent time silver got hot, however, it took oil at $150 and then the Lehman Brothers' collapse to do to GDP growth and commodity prices what central bankers wouldn't dare. Because raising interest rates to double digits to kill a "speculative frenzy" wasn't politically possible.

Silver's bull run, unlike gold's, is all about inflation. Which is worth bearing in mind whether you're quitting, holding, ignoring or looking to buy silver today.

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