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Welcome to the "Wolf Creek Pass" School of Monetary Policy

I don’t know if you folks remember that hit ditty: a humorous tune about two truckers attempting to manhandle an out-of-control 1948 Peterbilt down the “other side” of Wolf Creek Pass – a death-taunting section of U.S. Highway 160 where the elevation drops a hefty 5,000 feet in a relatively short distance.

The song’s two characters – a truck driver named Earl and his brother, who’s his partner as well as the song’s narrator – are taking a flatbed load of chickens on a speedy trip down this winding, two-lane Colorado highway. After the narrator gives Earl the above-mentioned warning, the ancient semi’s brakes fail.

From there on down, the narrator tells us that the brothers’ trip “just wasn’t real pretty.” The truck careened around hairpins and switchbacks, and then raced at an uncontrolled 110 mph toward a tunnel with “clearance to the 12-foot line” – with chicken crates sadly “stacked to 13-9.”

The drivers and the runaway Peterbilt “went down and around and around and down ’til we run outta ground at the edge of town… and bashed into the side of the feed store – in downtown Pagosa Springs.”

Believe it or not, I started thinking about this funny old country tune the other night – right after I’d read a piece about QE3 and the U.S. Federal Reserve.

As zany as it first sounds, the parallels are striking.

  • Silver Prices

  • Why Silver Prices Are Up Today why silver prices are up today

    Heading into the week silver prices were cooling off from a June rally, potentially signaling the start of the summer doldrums, when the white metal generally sees weak trading.

    But a new release from the Fed this week is one of the big reasons why silver prices are up today…
  • Silver Prices Today Ride FOMC Minutes to Slight Gains

    Silver prices began to flounder this week coming off impressive gains in the previous month, but the U.S. Federal Reserve provided a quick spark in afternoon trading Wednesday.

    Here are the details...
  • Silver Prices May Be Cooling Down, but They're Ready for Second-Half Gains silver prices

    Silver prices have been sideways this week, cooling off from a mid-June rally sparked by inflation-minded investors wary of the U.S. Federal Reserve's dovish talk.

    But the second half of the year looks good - here's why ...
  • Is Investing in Silver a Good Idea After June's 12.5% Surge? Investing in Silver

    The prospect of investing in silver in 2014 started off looking dismal. Silver was down by almost 50% since the beginning of 2013. However, the commodity appears to be making a comeback, rising 12.5% in June alone.

    With silver prices on the rise, is now a good time to be investing in silver? Read the story to find out...
  • Silver Prices May Level Off – but Will Stay Strong in Coming Months silver bars

    Silver prices got a slight bump this week, as traders continue to feed into the momentum of precious metal investments generated by fear of earlier-than-expected interest rate hikes. Silver prices are up about 1.3% on the week to $21.13 as of 12:17 p.m. today (Friday).

    This week’s climb is not as dramatic an increase as last week – here’s what has changed, and where the white metal is headed...
  • An Old Institution Dies… and a New Bull Market Is Born bull market

    After 117 years, the current London Silver Fix is shutting down.

    In fact, we know it's going to happen on August 14th for certain.

    Free marketeers are excited; for years many have maintained that silver prices are being manipulated.

    Ted Butler, for one, publishes commentary with a special focus on the silver market. Ted's likely the most outspoken observer of daily silver futures price machinations anywhere. I did an extensive interview with him on this very topic in 2012.

    Now comes confirmation that the London Silver Fix is finally closing shop.

    That in itself isn't proof of manipulation, but the circumstances certainly raise some intriguing questions.

    There are clues from its history worth studying - and profits to be made from its demise…

    Full Story
  • Silver Prices Today Jump on "Perfect Storm" of Buying silver

    Silver prices today (Friday) are still on the rise after ripping through the $20 an ounce level Thursday.

    July Comex silver was trading up $0.20, or 0.95%, at $21.10 in morning trading Friday. The silver price hasn't seen today's $21 level since March 17.

    Here’s what’s behind the move.
  • The Tone of Today's FOMC Meeting Matters for Gold and Silver fomc meeting

    Gold, silver, and the FOMC meeting today: Precious metal prices were fairly steady Wednesday morning awaiting the typically market-moving statement from the Federal Open Market Committee (FOMC) meeting today. The spot gold price was last trading down $0.90 at $1,271.50. July silver prices were last quoted up $0.003 at $19.735 an ounce.

    Over the last several years, investors have shown a keen interest in shiny assets as the U.S. Federal Reserve liberally printed money and distrust in dollars grew. But that interest has waned as the Fed slows its bond buying.

    Now an FOMC meeting can be a strong headwind for gold and silver...
  • Silver Price Today Cushioned by Solid Demand silver price today

    The silver price today moved solidly higher in morning trading following some positive economic data out of China.

    July Comex silver traded up $0.392, or 1.26%, at $19.73, after the preliminary HSBC China manufacturing purchasing managers index (PMI) for May came in at 49.7. That was up from 48.1 in April, and was the best reading in five months.

    Here’s what’s next for the price of silver…
  • With the Silver Price Low, Demand for Physical Silver Sets a Record Silver Prices

    It's like Money Morning Global Resources Specialist Peter Krauth has been saying: A low silver price doesn't scare away investors; it draws them in.

    As silver prices slumped 36% in 2013, retail investors took advantage of the dips and sent physical silver demand up 13% to an all-time high, according to World Silver Survey 2014.

    Here's what else is moving demand for physical silver today...
  • Spike for Silver Prices Ahead? This Options Activity Suggests So silver prices

    After rising as much as 16% earlier this year, silver prices are now nearly unchanged year-to-date. They're up just 0.2%, while gold has gained 7.2%.

    The silver price isn't the only number that's lagging...

    Silver's option activity sits near a decade low. That's highly unusual - and won't last.

    In fact, the low activity suggests some big changes ahead for the white metal…
  • Silver Prices Move Higher Amid Stock Market Sell-Off, Dovish Fed silver prices

    Silver prices spiked some 2%, or $0.51, to $20.49 an ounce intraday Thursday before closing the session up $0.37 to $20.14 an ounce.
    The gains came as the U.S. stock markets sold off sharply. Stocks sank even after the Labor Department reported U.S. weekly jobless claims dropped to a seven-year low, a sign of ongoing recovery in the labor market and the economy.

    But what we care about is the big picture.

    Here's what's ahead for silver...
  • Silver Prices Slip in 2014's Q1 but Consumer Demand Still Solid Silver Spot Prices per Ounce

    Spot silver prices rose $0.07, or 0.4%, to $19.86 an ounce midday Monday as precious metal traders and investors gear up for a busy week ahead.

    Market participants remain guarded, with a spate of U.S. economic data flooding in as the week wears on. Capping the busy week will be Friday's closely watched March jobs report.

    Meanwhile, Monday caps the end of 2014's first quarter.

    So let's take a look at silver...
  • Investing in Silver: Singapore Supplier Opens Vault on Soaring Demand silver prices

    Amid frenzied demand to buy and store silver, a Singapore retail supplier of coins and bars opened a new 600-metric-ton vault on Monday.

    The sizable Silver Bullion Pte. Ltd. storage facility can hold some $390 million worth of silver (at Friday's prices of $20.33 per ounce). Known as The Safe House, the new facility is located west of Changi International Airport. At present, it keeps some 37 tons of silver, mostly for its retail clients, behind a secure 2.5-ton stainless door.

    Here's what that means for investing in silver...
  • Silver Prices Today Rebound After Taking a Hit from FOMC Silver Price Forecast

    Silver prices today (Friday) were modestly higher as bargain hunters stepped up to buy the dips. In early trading, spot silver last traded up $0.11 to $20.45.

    It's been a volatile and punishing week for silver.

    In morning trading Thursday, silver futures for May delivery slumped 2.3% to $20.355 an ounce, on pace for the biggest drop since March 7.

    That put white metal prices heading for their fourth consecutive day of losses, the longest streak since Nov. 13...