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<p>[QUOTE=&quot;NorthKorea, post: 2005706, member: 29643&quot;]You basically just picked random numbers, didn&#039;t you. There&#039;s nothing to support those specific levels.</p><p><br /></p><p><br /></p><p><br /></p><p>The place of the dollar as the primary reserve currency wouldn&#039;t alter the fact that Americans would still price silver in dollars. If the dollar gets supplanted by the Yuan or Euro as the world&#039;s reserve currency, it likely won&#039;t be in the next decade. We&#039;re looking at 2050 as the earliest that will likely happen. The Euro is tied too closely to the strength of the US as a world power to supplant the dollar, so the only viable candidate is the Yuan. A world with the RMB as the reserve currency is, however, unlikely until China decides to fully unpeg the RMB from the dollar. It would take another 30% spike in the value of the RMB against the dollar to put Yuan into the discussion as a reserve currency. China doesn&#039;t want this, as it will weaken the position of China as a primary manufacturing economy for the world.</p><p><br /></p><p>The dollar index may weaken back to the mid-/high- 70s in the face of further easing, but the fact that the dollar didn&#039;t completely collapse after the first three rounds indicates that it would take a HUGE shift in policy to cause a collapse. QE4 isn&#039;t as big of a threat as a decision to allow interest rates to float up by 250+ bps. That is plausible and would be a huge detriment on the financial, construction and transport sectors. Coupled with the semi-freeze on infrastructure advancement in the US, seeing a spike in borrowing costs could cause the US economy to come to a complete halt.</p><p><br /></p><p>Any pullback in PM prices, at this point, would be driven by interest rates, rather than demand for the underlying metals. Investment demand for new discoveries will likely be near 0 already. Fear of purchasing is the same as fear of holding. If individuals are unwilling to sell on the pretense that they expect the metal prices to go up in the short run, they should be buying. The fact that so many are sitting on the sidelines is indicative that the herd thinks prices are going to continue to collapse. That is typically a signal that you&#039;re nearing a market bottom.[/QUOTE]</p><p><br /></p>

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