On Thursday, Sept. 9, the Treasury’s auction of 30-year bonds failed.

That is not how the mainstream financial media reported the news. Instead of having the available bonds subscribed multiple times over, bidders only purchased about 38 percent of the bondsat prices guaranteed by the Wall Street banks that underwrote the auction. As a result, these banks were forced to buy the other 62 percent of the bonds at the guaranteed price. Officially, all of the bonds sold, but the reality is that the outside buyers have largely evaporated.

The clear meaning of the failed auction is that the former enthusiastic buyers consider the U.S. dollar to be overvalued. To protect themselves from a higher risk of decline in value, the buyers want a higher interest rate.

At some point, perhaps by the end of the year, the value of U.S. Treasury debt will decline to reflect the need for a higher interest rate. Compounding the problem, Wall Street banks will not want to take on more debt for very long when they face the prospect that this debt will fall in value.

This is just one more news note that indicates that gold and silver prices are more likely to rise in the near future than decline.