The recent rise in interest rates foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort.
Gold and silver have a 6,000 year history for their use as a currency, and until the last century, the price of gold and silver maintained a healthy valuation ratio of 1 ounce of gold to every 15 ounces of silver.
Perhaps the greatest indicator that the end is near for a fiat currency is the return of the clarion call: "We owe it to ourselves!" Such is the ultimate capitulation and politically unifying mantra. Once the debt ceiling is raised literally, figuratively once and for all, the great gates of fiat money velocity will be opened wide.
We live in a time of great illusion in terms of money, wealth, and justice. Investment banking and finance continue to attract the greatest minds. Fraud of the greatest degree goes practically unpunished.
The silver and gold market has been rife with speculation about ongoing price manipulation. Most investors are now familiar with this concept, and even the mainstream has admitted that undue market influence has occurred.
Invariably, as the price of silver and gold move higher, more investors will be drawn in to the mostly paper precious metals market. All long term precious metal investors will probably at some point end up asking themselves the following questions.
Naked shorting of silver is not really the issue, as silver analyst, Ted Butler has been pointing out for decades, it is more about the extreme concentration of short silver positions and less about the big players being caught red-handed sending blatant signals of market price fixing collusion.
The recent drop in gold prices is a confirmation, or a revelation, to investors of the battle between the physical and paper gold markets. Here, Brien Lundin predicts the timing of a handoff from Asian physical demand to Western speculative demand.
One look at the headlines will tell you the gold bull market is officially over: The stock market is booming, a modest recovery of the U.S. economy is underway, and the dollar is dominating the forex. Does anyone really believe this story at this point?