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<p>[QUOTE=&quot;InfleXion, post: 1298135, member: 29012&quot;]I agree with you for the most part, but I wouldn&#039;t underestimate people seeking the US dollar as a safe haven which could create resistance for metals priced in dollars initially. I don&#039;t think gold and silver can fulfill their roles as money as long as the US dollar is still the world reserve currency and money printing is a viable method of eliminating debt. Lindsey Williams has been right about a lot of things, and he says if the Euro goes down it will be a matter of weeks before the USD does as well. Ultimately precious metals will need to be the new standard since sound monetary policy is reliant upon them as history shows, but as the scenario plays out anything could happen before that potential outcome. Maybe we have a deflation like in 2008 and metals drop like everything else because they are a paper dominated market. Maybe the renminbi emerges as the new world reserve currency and dollars revert to their true value. Anything can happen, but that&#039;s the draw of precious metals. They aren&#039;t dependent on any of these circumstances or entities because they have intrinsic value. Longterm I am very bullish on metals and I do think we will see QE3 at any signs of significant deflation, but there is plenty of room for more margin increases that the CME can use to keep metal prices down, and position limits aren&#039;t going to have any teeth until 2013 so it will probably continue to be a bumpy ride. Currently silver requires over 43 times more initial margin than bonds do, so it should be obvious which is the real bubble.[/QUOTE]</p><p><br /></p>

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