Silver Near Record High

Will it reach its 1980 record high overnight tonight? Maybe, maybe, but I can't wait to see history in the making.

Gold Update

As long as the United States continue to finance the expansion of its empire through money-printing out of thin air, backed by nothing, Gold and Silver price should continue to go up.

The is no end in sight to the current trend, and in fact current US foreign policy is indicating that its empire building activities is intensifying as evidence by the engineered chaos in the middle east which should soon spread to other parts of the world. This is very bullish for gold, silver and all real asset as people continue to move their asset from paper currencies into real asset.

Here is gold 30-day price chart

Here is gold longer-term price chart (updated)

Short-Squeeze in Silver Causing Silver Price Spike

Massive short-squeeze in Silver is causing a massive price spike in Silver, now approaching the 1980 price high of about $50 per ounce. Silver may have to break above its 1980 high of $50 before a larger degree profit-taking pullback sets in.

Here is the 37-year price chart for Silver

Gold and Silver Rally Continues

With the US budget deficit problem certain to get worse, and the Federal Reserve's Money Printing activities certain to continue, gold and silver price will continue to rise up to levels that most people would never imagine possible.

Today, Gold reached another all time high again and silver reached a new 31-year high.

Here is the latest gold chart

Here is the latest Silver Chart

Silver Continue to Rally

As physical silver shortage continues, price of  silver should continue to rise as well seeking supply. Although price has rallied over $20 per ounce since silver's price backwardation started, when silver was only $17 per ounce, backwardation still continue to persist to this day, an indication that price will need to rise much further to achieve it equilibrium price. A further rise in price would intensify the already intense short-squeeze in silver.

Here is a chart of spot silver taken today at the end of the day.

Gold at another Record High Price

As the day progressed and as short-squeeze in gold intensified, gold continued to make record high price closing up over $20 per ounce for the day. Baring any concerted effort by the US Federal Reserve to whack gold price down ahead of this weekend's Bretton Woods II meeting, short-squeeze should continue to intensify into the weekend, and may reach $1,500 to $1,650 per ounce by the weekend.

For us economist who follows the Austrian School of Economic Thought the current run-up in precious metals and commodity prices is a given as a consequence of the reckless US Central Bank policies of flooding the world with useless fiat paper dollar bills, with US dollar a World Reserve Currency. But for those mainstream economists, followers of the "Keynesian's Economic Thought"  whose group currently dominates the economic landscape in both private and public sectors, the relentless rise in commodities price is a mystery, something that baffles them. 

With no end in sight for the current US Federal Budget deficit, the Fed money-printing cannot end until there is total economic collapse such as the Weimer Republic or Zimbabwe. As a consequence, there will also be no end in sight for the current bull market in commodities.

Here is a chart showing gold price at the end of the day today.

Gold at New Record High

Gold had just reached a new milestone record high price just a moment ago. As "short-sellers" get squeezed and pulverized, gold is set to rocket up to the next target price level of $1,650 in a very short order before pulling back down on some profit-taking, which should be short-lived.

Gold bull trend's third wave up is just at the beginning stage, evidenced by the lack of participation by retail investors and regular man on the street, still missing in action. Gold bull trend still has a long way up to go both in "Time" and "Price". Here are some of the factors that should continue to support gold's upward price tragectory.

• 1. Bretton Woods II is just about to begin this weekend, with the meeting set to commence on 8th April 2011 in Bretton Woods. The main purpose of the upcoming meeting is the establishment of the New World Reserve Currency to replace the US dollar, and that is very very bullish for gold, as the new reverse currency may have to be partially back by gold.
• 2. The Collapse of Europe, which started with Greece, Ireland and now Portugal. After Portugal will be Spain, then Italy. Saving these countries will require massive amount of money-printing by the European Central Bank.
• 3. The coming collapse of United States of America, but before that happens, the US Federal Reserve will print money into oblivion.
• 4. Unrest in the Middle East, which both the European and American governments co-engineered in order to divert attention away from their collapsing economies. The current unrest can get out of hand very quickly and thus bullish for gold.
• 5. The most important factor is the continual money-printing at an accelerating pace out of thin air by the US Federal Reserve, flooding the world with useless paper dollar, triggering massive inflation worldwide. There is no end in sight for the Fed's money-printing to finance the ever-increasing US budget deficit.