http://www.financialsense.com/fsu/ed...

"...So, the hypothesis here is inflation will beget inflation on a global basis until credit mechanisms still governed by international bond markets are stifled, making sovereign debt markets the 800-pound gorilla in the room. Of course as money comes out of US bonds, in addition to looking for a home elsewhere (outside of the States), asset wise it will invariably be attracted to increasingly tight commodity markets given the inflation backdrop, of which precious metals qualify. (i.e. especially silver right now.)

It’s as simple as that in my view when it comes to precious metals at present, where a little further patience by those wishing to accumulate should prove wise if history is a good guide. Remember, this is just the beginning of the quarter, where hedge funds will have a propensity to buy stocks / the $ and sell precious metals / commodities until June. And although they may have only limited success in this regard due to liquidity provided by buoyant stock markets, lower prices for precious metals will still likely be the result; so again, patience Prudence."