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If gold and silver prices are any indication, Mr. Bernanke’s 60 Minutes appearance did little for his credibility.

December 07, 2010 – If gold and silver prices are any indication, Mr. Bernanke’s 60 Minutes appearance did little for his credibility. Yesterday gold reached a record high and silver hit its highest level since the Hunt brothers tried to corner the market 30 years ago.

Silver, in fact, is breaking new ground every day. This year’s stunning growth of 70% in the silver price is unlike the spikes the metal has experienced before. Instead it has been on a steady robust climb in response to strong increases from both the industrial and investment sectors. The broad base of silver buyers lends substance to today’s prices and is a strong indication that the current trend will endure.

While oozing confidence that the Fed was in complete control, Bernanke stated that the economy could fall back into recession if unemployment didn’t improve for an extended period. In the same breath he said that such a situation was unlikely, which in light of recent data and expert predictions seems oddly out of touch.

Bernanke went on to say that the Fed might expand the QE2 bond buyout, despite deep concern among experts both here and abroad. But Bernanke dismissed their fear of runaway inflation as being greatly exaggerated, and expressed unreserved confidence that the Fed can take action at the first sign of any unwelcome movement in prices and nip it in the bud. According to him “there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time."

Indeed, what could possibly go wrong? Maybe Bernanke is right and the rest of the world is just plain cynical. Or maybe we are so accustomed to whitewash that we can see right through it. We cannot be so easily dissuaded from protecting ourselves with gold and silver investments.

Shannon King

Senior Staff Writer – GoldSilver.org

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