03/23/11 Baltimore, Maryland – Gold may well have set another record by the time you read this. The spot price as we write is $1,441 – just $3 off the high set earlier this month. Silver, at $36.81, could burst through $37 by day’s end.
“The precious metals are giving a clear message,” says GoldMoney’s James Turk, “namely, that the dollar is in trouble. Gold and silver are near their recent highs, and this shows both markets – the dollar and the metals – confirming the trend.”
The US dollar index, despite a minor bounce today, remains beneath a low set last November.
The greenback can’t even catch a break from the PIIGS countries. The yield on 10-year Irish government bonds pushed over 10% today, and 10-year Portuguese debt now yields over 7.5%.
The European Union, meanwhile, has put off deciding whether to increase the size of its bailout fund, currently around $624 billion.
Result: The euro is up against the dollar, trading right now for $1.414.
“The fundamentals behind the dollar are atrocious,” James Turk continues. “With Europe on the verge of raising interest rates and the Federal Reserve set in its ways keeping interest rates low as far as the eye can see, people around the world are going to increasingly dump the dollar.
“At some point, there is going to be a panic as the flight from the dollar moves from the relatively orderly retreat we are currently witnessing to a stampede. The charts are telling me that panic is about to begin.”
Prepare thyself accordingly.
Addison Wiggin
for The Daily Reckoning
Addison Wiggin
Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He’s the creator and editorial director of Agora Financial’s daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar… and Why it’s Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.
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