Gold and Silver spiking!

Today we noticed that Gold and Silver were spiking up with 1.6% (gold) and 1.7% (silver).

The prices are back on the levels we saw in mid January of this year for gold but silver still behind a little bit.

The question is, will this rise be sustainable, will this rally continue and will the powers that exist in the markets, let this happen to exist.

What we see on a regular basis is that after a correction like this, an opposite reaction will occur.

With the metals moving like this, signaling major troubles in the financial markets and specially the US Dollar weakening, the market manipulators have the tendency to step into the market and mute this strong signal before the average people are recognizing what is really happening in the economy.

Although we see inflationary signals in the economy, I still think that they are not to a level in which we will see a real massive flight into the precious metals.

But some event is lurking around the corner. However the powers of the manipulators will downplay it for as long as they can.

So it it good to see that a signal is given, but be prepared of a counter reaction in the next days.

A major indicator for the metal markets will be an increase in the money velocity, specially with the huge amounts of currencies floating around everywhere. This, with a intrinsic rise of the interest rates will lead to some kind of hyper inflationary momentum which will most likely be the “engine”, pushing the prices for gold and silver to levels as we experienced in in 2008.

However, I am not holding a crystal ball and when this event will take place is “clouded”.

So be prepared, keep on watching and accumulate some gold and especially silver because I feel that silver has more uptrend compared to gold.

Enjoy!