We are living in turbulent times regarding our financial economies. The USA for example is a whopping 14.5 Trillion Dollars in debt. The United Kingdom is nearing its credit card limit of 1 trillion Pounds. China (the unstoppable train) is a hair line from a nationwide slowdown and crash. What can we all do to stop this spiralling out of control? Not much, say the financial gurus. We can however protect our wealth from out of control inflation.


For centuries gold and silver have been used as a means of exchange [see Silver: A true store of value]. Paper currency and credit cards have taken gold and silver's place. As the new means of exchange grow weaker, gold and silver are a safe haven for maintaining wealth.



The yellow metal Gold as risen to new highs once again. As of July 2011 the Gold Price is $1600 an ounce. The silver price is equally impressive at $40 an ounce, 4 times its $10 price 2 years ago.


This is all due to the spiralling debt, which equals more money being printed, which finally equals the debasement of our paper monetary system. Buying Gold and Silver which a percentage of your savings will protect your money from a total loss. As money is printed, Gold is not, and takes its place as the best protection asset of personal wealth.

Concerns about Libya, Saudi Arabia and the Middle East and North Africa continue to dominate markets. There are growing concerns of contagion and oil supply disruptions from the region. Oil and gold have risen and silver for immediate delivery surged another 2.3% after climbing to $36.5375, the highest price since Feb. 14, 1980 when silver reached a it’s nominal high $50.35.

WTI Crude Oil – 5 Year (Daily)

Oil (WTI) rose 6.7% last week and contributed to silver rising 6.94% and gold rising by 1.33%. These gains have been added to again this morning. Growing concerns that surging oil prices will lead to further inflation and snuff out the already tentative global recovery will lead to continuing safe haven demand which will support the precious metals on dips.

Gold in US Dollars – 1 Year (Daily)

Currency debasement on a scale never seen before in modern history continues in the U.S. and other countries. This is leading to a real risk of stagflation and possible even hyperinflation if sane monetary policies are not returned to soon.
The fiat currency experiment of the last 40 years (since Nixon came off the Gold Standard in 1971) grows more precarious by the day. Ironically, Alan Greenspan, the central banker most responsible for the cheap money policies and asset bubbles of the last 20 years, has again warned about the euro and dollar being “faulty” fiat currencies.

Greenspan again said how gold is the ultimate form of payment and currency (see interview and transcript of interview in News).

Reuters Thompson CRB Commodities Index – 5 Year (Daily)

"What the price of gold is saying is essentially that there are elements within the marketplace which feel very uncomfortable with respect to what's going on generally," the former Federal Reserve chairman said. "It's not an accident that you're finding that central banks are going in to buy gold."
Greenspan emphasized that he isn't calling for a return to the gold standard. That's just not doable, he said. "I do think that to get a sense of the stability of the system, watching the price of gold is not too bad."


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As our national debts increase, spending continues and unsettlement sweeps the East, commodities have naturally been performing well. Gold has made an all time high, a very familiar expression of recent times. The current gold price is now topping $1425 an ounce. Silver has been very bullish since its run up from $18 last August, through its $30 wall to a very respectable $36 today. While rising prices are great for precious metals investors, alarm bells are ringing as to whether the recent rise is due to speculation regarding the economy. In 2008 during the market crash, a theory emerged. The "Supercycle theory" predicted that during an economic recovery, demand for commodities would increase creating a bull run for the likes of precious metals gold and silver.
Supercycle fueled by urbanization
The Supercycle theory was first ignored. Finance gurus believed that rising commodity prices would be due to speculation and in essence, manipulated to make "quick money". Well the bull run continues for commodities and precious metals continue to reach new highs. The Gold/Silver Ratio [GSR] is down from its 35-year average of 60:1. Recently we have seen the GSR hit 40:1, it now takes a lot less silver to purchase gold. Precious metal bugs are no longer dreaming when talking of the GSR hitting its 100 year average of 16:1.
While China continues to expand at an alarming rate, India joins in the frenzy with an ever growing middle class. Commodities are being "gobbled-up" worldwide. The urbanization race is continuing to fuel the demand for commodities and therefore driving prices up to new levels. Historic trends may not be of use in today's day and age, as global superpowers shift from West to East.