'Gold and silver will shine over the next few months'

Last Updated : 01 February 2012 at 11:30 IST

By Patrick A. Heller
Through the COMEX close on Monday, January 30, the prices of Gold and Silver had increased more than 10% and 20% over the course of the month. Had these results been realized by any of the major stock indices, you can be sure they would garner headline coverage. But strong markets in gold and silver continue to receive comparatively minimal reporting by the mainstream financial media.

Actually, the value of gold and silver haven’t changed at all. Ounces of physical gold and silver are still worth the same today as they were a month ago. What has changed is that the values of paper currencies, stocks, and bonds have mostly fallen in January.

In mid-January, the US Dollar Index reached its highest level since September 2010. This temporary strength resulted from the weakness in the Euro. The falling value of the Euro was related to the financial problems in many European nations, where sovereign credit ratings were dropped for at least ten countries in that continent within the past month. Governments such as France, Italy, Spain, and Austria were among those hit by credit downgrades.From its peak two weeks ago, the US Dollar Index has dropped 2%.