Gold, Silver Break New Highs as Dollar Loses Appeal

The gold GLD and silver SLV meteor keeps soaring in the skies over Wall Street as the US dollar UUP is parachuting into new lows. The spot price of silver this week broke $34.40, zooming into a record high area unseen since 1980. On March 1, gold followed its poorer brother by breaking out at $1425.

The US dollar is challenging all-time lows. It does not take a PhD from Princeton to realize that there may be a problem here. Maybe the recent radical central bank actions should be reconsidered? True, 401(k)'s look good, but it has come at the expense of significant dollar debasement.

The million dollar question: Stampede or showdown? Will gold and silver continue to stampede into new highs making considerable gains or will the struggling dollar reaching record lows make a showdown, putting a ceiling on the precious metals rise?

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