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<p>[QUOTE=&quot;passantgardant, post: 1144914, member: 30033&quot;]Indeed, higher interest rates (much, much higher -- such as the 20%+ prime rate in the early 80s) could dampen demand for precious metals.&nbsp; However, the economy is not improving.&nbsp; Nothing which caused the crash of 2008 has been fixed.&nbsp; The &quot;too big to fail&quot; banks are bigger than ever and sitting on bigger &quot;assets&quot; not yet marked to market.&nbsp; Debt, both public and private, has gotten worse.&nbsp; And the illusion of recovery is only due to massive debt spending and over $4 trillion printed by the Federal Reserve.&nbsp; Not only would higher interest rates plunge the economy into depression, but it would explode the federal deficit bigger than tax revenue!&nbsp; If you think a $1.65 trillion deficit is bad, wait until the annual interest on the national debt alone is over $3 trillion!&nbsp; It is simply not feasible for interest rates to grow enough to seriously suppress precious metals.&nbsp; The Fed won&#039;t allow it.&nbsp; And if they fail to control it, then inflation will far exceed any interest rate since the Fed will have to monetize the interest on the national debt, so PMs will continue to grow.&nbsp; If you truly think that the Fed will allow the Greater Depression (despite all of Bernanke&#039;s rhetoric to the contrary), then get out of PMs.&nbsp; If you believe that Bernanke will drop money from helicopters before permitting the kind of collapse which would accompany 20% interest rates, then PMs are both excellent insurance and a great investment.[/QUOTE]</p><p><br /></p>

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