Volatility in silver has been extremely high, with prices pulling back from the recent parabolic upward moves to close at $45.60 today. All eyes are on tomorrow’s Federal Open Market Committee (FOMC) and Federal Reserve Chairman Ben Bernanke. If the Fed intends to continue quantitative easing, we can expect continued gains in stock prices and precious metal prices. If they are cutting off the printing presses temporarily, we can expect a temporary pull back in metals prices.
In the long term, precious metals will always win out over fiat currencies. In the longest of terms, Mother Nature ensures all paper currencies will eventually be worthless as dirt. It looks like she has already had it with the money printing as news came out this week that termites in India have eaten millions of rupees in a bank.