It Will All Hit the Fan In 2007, Part 5

Gold and silver have recently hit new multi-decade highs, as described in this article from Bloomberg.

Gold hit a 25-year high and closed at $614.50 an ounce, up 33% since November, when it sold for $460 per ounce.

Silver recently topped $13 an ounce, for the first time since 1983. Silver is up 67% since November, when it was went for $8.00 per ounce.

Gold and silver are known to hold their value, especially during turbulent times. Rising gold and silver prices indicate that the smart money (i.e. not John "E-Trade" Doe) is hedging against currency risk by accumulating hard assets.

By themselves, rising gold and silver prices may signify nothing, but when considered together with the indicators described in my previous posts, they are yet another ominous sign that our economy may be headed for rough times.

Links to my previous posts:
Part 1, Part 2, Part 3, Part 4, Part 4 (Addendum)