Economics and Investing:

I’m sure that most SurvivalBlog readers watch precious metals prices closely. Friday on the COMEX was amazing: Spot gold at $1,486.40 per ounce and spot silver at $43.05 per ounce! At this point, it is best to wait for a big retracement before buying any more.

Big banks are government-backed: Fed’s Hoenig

Reader G.P. suggested this Daily Mail article: $5 gas by summer? Prices near $4 a gallon as frugal Americans cut back at the pump (and some even start stockpiling food)

Goldman Sachs Calls the Top in Oil and Metals: Clients Advised to Close Positions. JWR’s Comment: Given the market fundamentals, I’m dubious. But as I recently mentioned, this would now be a good time for anyone that bought gold at less than $750 to sell up to one-third of their gold and immediately reinvest the proceeds in other tangibles, to diversify.

G.G. sent this: U.S. Deficit to Rise to Largest Among Major Economies, IMF Says

Larry T. recommended this article: Chinese Real Estate Bubble Pops: Beijing Real Estate Prices Plunge 27% In One Month

The latest FDIC Friday Financial Failure Follies: New Horizons Bank and Bartow County Bank, both in Georgia.

Items from The Economatrix:

Stocks Edge Higher But Leave Banks Behind

Rising Gas Prices Push Wholesale Costs Higher

Senate Report: Goldman Sachs Behind Economic Crash (But the government helped too by not providing oversight)

Higher Prices Because of Japan Earthquake