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Good Morning: Our views on Gold and Silver and outlook on the Precious and Metals sector in general have been righteously manifested over the past few days and overnight, Silver soared by as much as 40 cents higher to new 23 year highs, Gold set new 25 year highs and Platinum set new all time record highs reaching $1,100 per ounce for the first time ever. Palladium not wanting to be left out also set strong multi-year highs overnight in one of the most synchronized and coordinated powerful moves in years if not ever for this sector and as we have said before, as much as $100 ago in the case of Gold and several dollars ago in the case of Silver this had all the hallmarks of the advance that was taking place a year ago in the Energy sector from about the Forty Dollar level in Crude Oil and we all eventually found out what happened to Energy Prices in August and September. When the entire sector is unified in pushing relentlessly to new highs almost every day in a synchronized and highly organized manner, it generally means there is a lot more ahead and also that some big event or even series of events that will entirely justify these moves will be manifested, just as happened when Hurricanes Katrina and Rita struck.

In the case of the metals rise, as we pointed out yesterday, Gold and Silver in particular are emerging from a 25 year base that has really contained prices over that period and held these metals down and tamed them effectively. Now the very fact that these metals are in fact vigorously breaking out and sharply higher from their former trends is telling indeed of the future and quite frankly the measured moves off these bases are truly staggering to say the least and almost spell some sort of hyperinflation down the road. Something we predicted might happen as long as a year ago, when we wrote our special report on the subject entitled: Global Hyperinflation Threat. What is not too widely recognized is the fact that a number of currencies around the World over the past Century starting with the record setting Wiemar Republic mega-inflation of all time, where they literally went shopping with wheelbarrows full or money and the price of the food went up so fast, diners had to pay more by the end of their meal is not fantasy, it happened, just as happened to a lesser extent with the Latin American inflation of the 80's and 90's. The Almighty Dollar has been the coined phrase of our Generation: It may not stay that way...

And that next development that could put us on a path to hyperinflation, could be the decline of the US Dollar. This has yet to occur, but it almost feels like the calm before the storm. The Dollar seems to be exhibiting some tiredness and the currencies appear to be coming back to life, so from that we would conclude and further breakout in the Euro as constructive and potentially Dollar negative. The time may not be quite here yet and further Dollar strength cannot be ruled out, but the very fact that the entire Precious Metals sector is soaring completely oblivious to what the Dollar is doing or even a firm Dollar at that, has to be not just very bullish, but exceedingly so. Today could be those long lost Limit Up moves we've been waiting for and expecting could come suddenly out of the blue any day now and that day could be today...

Yesterday, Stockmarkets rebounded around the World especially in Japan which set new multi-year highs and the strong comeback in the US markets was impressive indeed, especially the Nasdaq surging to new five year highs or so. A very encouraging sign such that if we can get through April without too much of a skirmish in Equities, the current setup could be extended into a very strong May and could in fact morph into a Summer Rally to end all summer rallies and Gold and Silver could continue higher along with Equities at least for now...

Trade Well
From the Desk of Savant

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