Silver posts biggest monthly gain in 22 years; gold rallies

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Gold and especially silver are on fire as the decline of the U.S. dollar gains steam. Above is the chart of the silver ETF, SLV. The inflation train is leaving the station and smart money knows it and is piling into gold, silver , oil and food commodities. I have been warning you about the possibility of a dollar crisis and hyper-inflation and it looks more likely by the day. The big decline in US bonds this week (before what looks like government intervention Thursday and Friday) portends big problems for the dollar, interest rates and the hope of economic recovery later this year. Gold looks ready to challenge $1,000/ounce again and silver may take oout it's 2008 high of 20$. Oil hit $66.64/bbl on Friday. Make sure you have some inflation hedges in your portfolio.-Lou

Silver posts biggest monthly gain in 22 years; gold rallies

NEW YORK (MarketWatch) -- Silver futures gained 3% Friday, ending May with their biggest monthly gain in 22 years as inflation worries and hopes for an economic recovery boosted the metal. Gold rose to three-month highs as the dollar slipped.

Silver for July delivery, the most active contract, gained 45 cents to end at $15.61 an ounce on the Comex division of the New York Mercantile Exchange. The front-month June contract closed at $15.60 an ounce.

Meanwhile, gold for June delivery rose $17.30, or 1.8%, to close at $978.80 an ounce, the highest settlement since Feb. 23.

Silver has gained 26.6% this month, the biggest since April 1987. The metal has many industrial uses but is also seen as a hedge against a weaker dollar and inflation. In contrast, gold, which has limited industrial uses, has gained 9.8% in the month, the biggest monthly gain since November.

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