http://www.marketwatch.com/story/gold-futures-edge-higher-but-silver-slips-2011-05-12

You can’t eat silver.

Still concerned about the economy and inflation though.

I think silver is rising in tandem with current as well as anticipated inflation in addition to a very realistic view on domestic job growth.

The Federal Reserve is already talking about QE3 when QE2 runs out in a few months. Job growth is minimal. Food prices are definitely rising in addition to other common household commodities. And, finally, our national Congress shows zero inclination to balance the Federal budget; 61 billion is a divot compared to the large debt pit, and 4 billion is a joke.

Now we are seeing oil sharply rise, and stablizing at new barrel price highs in spite of the release of much more supply from the Saudis. That will, in turn, become the ‘reason’ for a Libyan intervention, even higher prices, and QE3. It is a circular argument that feeds upon itself over and over, and few question it.

I see that you are wisely deciding to hold off on more silver purchases. My own approach to prepping is: buy what is cheap when it is cheap; not an uncommon maxim for your readers, that is certain. Right now, silver ‘feels’ inflated. The logical question is: what is not? What is on sale at the Fred Meyer? Are seeds discounted at the local plant nursery? Is now a good time to take advantage of a coupon from Autozone to put away some air filters for cheap DIY repairs later?

I think that you are spot-on in your assessment of the current situation.

Keep your powder dry.
Paddy

Gas is up now due to mid-eastern instability but I think that too will pass. It isn’t like any oil wells are on fire or supply is disrupted.

With that being said, we’d better not let the Fed do a “QE III.”

The state police have had a negative impact on BHM’s business. I had one long-time advertiser cancel his ad with BHM after he was ticketed and, he felt, verbally abused by a state police officer north of town. He arrived at the BHM office in a very distressed frame of mind, and I think he subsequently misdirected his anger at the magazine. I guess he reasoned that had he not been trying to visit the magazine that he wouldn’t have gotten the ticket.