The cost of silver has skyrocketed within the last week to nearly $50 an ounce. After the Federal Open Market Committee met to discuss the current state of the U.S. economy, the decision was made to continue with the current policy of monetary easing. Despite inflation worries and a jump in commodity prices, Bernanke explained to reporters that while there has been some improvement in the area of job creation, the Fed's primary goal was to stabilize the financial markets. He continued by saying that the Fed recognizes that there is growing inflation, which is not sustainable in the long term. In response, he indicated that the Fed will likely begin to raise interest rates around mid June.
While there was expectation of a devalued U.S. dollar, the Forex Robot team did not anticipate the very quick and unprecedented spike in agricultural and commodity prices. Some well known contrarian investors believe that while long-term prices will continue to increase, these short-term prices are simply too high. As with all investment advice, you must first do plenty of homework and understand current trader sentiments.