Aaron is correct. The Fed's measurement of inflation is a joke. They measure prices on products that are made in China, but the inflation is masked by cheaper labor costs in making those products. It shows up in all commodity prices, and their price is further enhanced by speculative bubbles as investors flock to these inflation resistant assets. 

The fall of every great empire is preceded by a massive trade deficit. You English should know something about that =)

Only 10 years of reserves. Brace yourselves boys ...

While metal prices might be marginally higher due to increased demand, what's really going on is the value of world currencies are dropping. The central banks have been printing money and creating new credit like crazy to try to prop up the dollar, which intern is being inflated to pay for the war and entitlement system in the US. Start paying attention to what your governments and central banks are doing.