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.

The Federal Reserve just reported that inflation exceeded their 2% target for the first time in five years and the University of Michigan reported their inflationary expectations have now risen to 2.7%.

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.