Why Bonds are Rallying

Another day, and still no agreement on a 2011 budget
in Congress. Surprisingly though, the stock market is not really being
affected by the impasse. Sure, the major indices are down slightly again
today, but I think we can all imagine that it could be much worse.

Treasury bond prices have been choppy, with big $3 price swings on the
chart of the iShares Barclays 20+ Year Treasury Bond ETF (TLT) in July. But
overall, bonds are holding up well, and this tells us clearly that no one
expects the U.S. government to default on its bond payments.

$50 Silver?

A story by Robert Lenzner in Forbes Magazine today outlined the potential
for silver to go as high as $50 an ounce in the near future.

With silver on the march from year to date lows of just over $15 an ounce
all the way up to recent highs of over $30 an ounce, it’s been one of the
best performing asset classes of the past year – and even the past
decade.