Quote Originally Posted by lacarnut View Post
The rise in the price of silver, gold and other commodities is partially due to the the falling dollar but most investors think and rightly so that the dollar will continue on its downward spiral. Investors that make a paltry sum on CDs or M.M. accounts are on the short end of the stick. Therefore, many have started investing in commodities as a hedge against inflation.

The silver that I bought a year ago at $16 that is worth $$32 today will go further up in value if inflation gets out of control. If not, I will sell at a tidy profit.
At least you are well hedged against inflation, and can turn a good profit off the inflated dollars, in real purchasing power, if we are able to turn the market around. Exchange the silver for devalued currency when it looks like there is going to be a constriction of the money supply, or an upswing in demand for dollars. Then those devalued dollars will regain their purchasing power.

I'm afraid I've missed the commodities boat. All my investments are in long term growth funds, and I can't easily liquidate some of it and move it into gold and silver without getting raped by the IRS. :(