The Dollar continues to free fall into oblivion, driving gold & silver further up. The out-look for the Dollar is grim. The Fed is meeting on Tuesday & Ben Bernanke will hold a press conference Wednesday night, expected, more of the same – defense of low rates & continued ignoring of inflation. Allowing the Dollar to continue it’s downward spiral against the other fiat currencies.
These factors along with current global demands on gold & silver continue to accelerate their acquisition as alternative currency. John Stephenson, Portfolio Manager at First Asset Funds said on CNBC’s Fast Money, What is at the heart of all of this is a distrust in paper money. So long as the Fed keeps interest rates below inflation – anything below 2% — these commodities will keep going higher.
Unfortunately, it looks as if Bernanke & the Fed plan on keeping this course for the remainder of 2011. This is good news for those thinking that prices are too high to enter into the metals markets. Gold & silver may be your only real choice for the near & long term to hedge against the decline of the Dollar & inflation. Read more: CNBC – Morning Note: Silver, The New Safe-Haven Currency?