The runaway rise in gold prices is here to stay. And that is not just bad news to the U.S. economy. A sustained gold and oil boom indicates that the dollar is slipping into grave danger and the economy closer to collapse.

... when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse, Michael Snyder wrote in Daily Markets on Thursday.

In simple words, the gold and silver boom indicates that investors everywhere in the world are losing trust in the dollar and the U.S. government treasuries. And they seek out something they can trust more.

A Standard chartered Bank report on Thursday said dollar will further weaken against the Chinese yuan and Indian rupee.

Synder blames the quantitative easing for the loss of dollar value. He says the policy of pumping huge amounts of money into the financial system is highly inflationary and a form of cheating.

He says it is like playing Monopoly with someone that reaches under the table and pulls out a bunch of extra money when they are almost broke.

The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money. And he says the rest of the world is now seriously doubting the sustainability of U.S. government debt. And this is reflecting in the commodities boom.

The Standard Chartered bank report said gold prices could reach $2100 by 2014 per ounce and that as high a price as $5000 per ounce by the end of the decade is possible.

Gold prices have currently crossed the new record peak of $1460, which is a manifold jump from a lowly $265 at the start of the decade.

The bank said gold prices are yet to hit the super cycle as demand from the emerging economies like China and India will scale to peak levels later in the current decade.

We find that there is a powerful relationship between income per head in Asian emerging markets and the gold price, which suggests further significant upside for gold, the report says.

Besides gold, silver is inching to another peak of $40 and there is already talk that it will soon touch $50. While the rise of oil prices is owing to different a set of reasons, this also implies serious troubles for the U.S. economy.

Snyder says high oil prices are indicative of greater damage to the economy than high gold prices.

Can Gold Really Replace the US Dollar?

Leonard Melman: On Freedom and Gold's Future

Default or Hyperinflation? Take Your Pick, there is no Third Option and Gold Wins Either Way

Gold Demand: India & China Jump to Unbelievable New Records