The pendulum has swung

Since my last post, the pendulum has swung.

Gold is now solidly above the $1600 mark, with silver holding steadily on to the $40 level. Again, the gold bears are in hiding with a downside unlikely, and the bulls are about to take charge.

Monetary crisis is deepening with the US facing a debt ceiling crisis and Europe struggling with it's continuing saga with the P.I.G.S. (Portugal, Italy, Greece and Spain). Rumblings in Asia are also discontenting, as some nations and many municipalities have increased debt levels to unsustainable levels. Are we about to see a monetary collapse of unprecedented proportions?

IMF magicians along with central banks are trying to concoct a miracle potion that may save the dollar from collapse, time will tell if the succeed. All fundamentals have eroded, so any fix would be temporary at best. How soon until we see triple digit silver and $5000 gold? It just may be sooner than we think...