The tremendous recent upward move of gold and silver is a good indicator that happy times should be here again for investors in Commodities.

 

Because companies had to go through a period of forced liquidation and deleveraging, commodities were held back as firms looked for ways to raise cash. Now that that period seems to be winding down, money is again flowing to commodities, as confidence in the u.S. dollar continues to falter and its safe-haven status ends.

Inflation is in store for Americans as the Federal Reserve will have to run its U.S. dollar printing press without stopping as the debt load of the country expands under the misguided effort to bailout any company or individual running their operations poorly.

That is good news for many commodities, as Treasury bonds, equities and anything related to the dollar will be abandoned in search of capital growth and safety.

With commodities taking a breather until things unwound, now that that time seems to be happening, we should only see the commodity sector grow in value in 2009, and long after that.

The commodity bull market is back on, and those looking for a solid place to put their money could do much worse than in natural resources.