Metals Are On The Run

Precious metals get a lift; the world beginning to lose confidence in the dollar as its reserve currency.

Precious metals are back in demand.  Metals are often viewed as a protection against inflation and at the rate the Federal Reserve is printing dollars we could very well see inflation hit hard.  The Federal Reserve has the ability without consequence (perceived) to inflate and deflate the amount of US Dollars are on the market (Money Supply).  Without a gold standard or restriction on how much US Dollars can be in the market the Federal Reserve can do what it likes in terms of the Money Supply.  Our US Dollar is no more than a fiat currency backed by nothing and created without pause or understanding of “unintended consequences.”  Throughout history all fiat currencies fail and the system reverts back to the gold standard.  Thus, created an INFLATED view of Gold’s value.

At the moment, we have seen the Federal Reserve inflate the US Dollar by more than 70% since October.  This is almost doubling the amount of US Dollars in the market hoping that it will solve the economic crisis we face.  However, this is much like treating the symptoms and not the cause.  The actual cause of this mess is the Federal Reserve itself creating unnatural lending rates and standards.  It is Ben Bernanke and company who are manipulating your wealth to suit the needs of the private bankers.  The move in the precious is metals is a move in which those who hold these metals secure themselves protection against inflation.

Take a peak at the following charts:

These are strong chart patterns with decent accumulation and could reap some beautiful gains.  There is a strong fundamental case for metals and now we have the charts to back those up.

Enjoy the remainder of your weekend!

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