While present official numbers remain quiescent at below 2%, we strongly believe the seeds of future inflation have now been laid via virtually unlimited currency creation by various central banks around the globe.

This collection of positives augurs well for strengthening worldwide industrial activity leading to upward price pressures and eventually rising inflationary expectations—all of which have historically positive implications for gold and silver...

If we watch the action in six important markets, then we must conclude that there is, indeed, cause for deep concern.

From our precious metals point of view, I would note that if the production of these metals fails to meet demand, prices will likely rise, perhaps very smartly, thereby fueling additional increments of future inflation.

Putting it all together, we have indications that the petroleum price increases could continue and we believe that if that is the case, the impact on precious metals would be positive.