Soaring Gold and a Sinking Dollar Signal Trouble Ahead

As measured by the price of the forward December contract on COMEX, the value of gold is up nearly 30% -- over $300 per troy ounce -- since last October, and it recently closed at a record high (in nominal terms) of $1,374 per ounce.Hardly unique among commodities, gold has had lots of company in the trading pits. Silver is up by 32%, and even the price of coffee is on the rise -- not only on the exchanges, but at Starbucks too.Gold's unflinching rise has caught many traditional equity investors off-guard, and some are even angry about it. Warren Buffet's investment partner Charlie Munger, who lists to the right, counterbalancing Buffet's leftist leanings, has remarked recently that even though gold seems to be working as an investment theme, those who invest in it are "jerks."But several financial seers -- Marc Faber, Jim Rogers, and Peter Schiff among them -- saw gold's rise as inevitable and linked it directly to the massive ongoing issuance of cheap money by the Federal...(Read Full Article)

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