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<p>[QUOTE=&quot;Bluesboy65, post: 1092674, member: 23329&quot;]Thanks for bringing us back in to a PM discussion.&nbsp; Taking it up to a 10,000 foot view, there are certainly supply/demand dynamics that are driving commodity prices and this year is no exception.&nbsp; However when you look at the broad based commodity move in 2010 something else is at work.&nbsp; Cotton, Sugar, Wheat, Corn, Copper, Coffee Gold and Silver all had an incredible run.&nbsp; This is not ALL explained by crop failures, increased demand, decreased supply etc.&nbsp; We are seeing inflation and the expectation of inflation work it&#039;s way into input prices.&nbsp; As everyone knows, the dollar is the reserve currency and this allows the US to export some if it&#039;s inflation to other countries that hold large quantities of dollars in reserve (so they can conduct business in dollar denominated trade).&nbsp; Many countries around the globe are beginning to experience a significant amount of consumer price inflation as their input and import costs go up.&nbsp; In reaction you see them increase their lending rate to strengthen their currency.&nbsp; This is happening in S. America and in Asia.&nbsp; If you have read many of my posts you have probably picked up on the fact that I believe we will see significant inflationary pressure here as well (more than we have already; it&#039;s already begun).&nbsp; Commodities in general have traditionally been a good store of value (purchasing power) in an inflationary invironment.&nbsp; If you are set up to produce and deal with a kabillion bushels of wheat or other base commodity I think you are in good shape for many years to come.&nbsp; For the rest of us I think Gold and Silver will prove to be an equally effective way to preserve wealth.&nbsp; I am not a collector or a supply/demand driven investor in PM&#039;s; I got in a couple of years ago because I came to believe Fed Policy, current and projected debt levels, future unfunded social programs, geopolitical risk and lack of political will deal with it all militate against our current standard of living.&nbsp; Metals will rise in response.</p><p><br /></p><p>Regards,</p><p><br /></p><p>Bluesboy65[/QUOTE]</p><p><br /></p>

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