I agree with you that another round of deleveraging is on the horizon but I believe this deleveraging will occur somewhere else other than PMs. Too much money has been withdrawn from key sectors including tangibles that too many producers are no longer economically viable. Commodities have collapsed having been milked dry and are due for a rally whereas many US-denominated assets are vastly overinflated. I think that is where you will see the next major round of deflation, in places like US Treasuries which are bloated beyond all reason. In my view the majority of funds that were forced to delever commodity/PM long positions have already done so, leaving bloated US Treasuries the next logical target ripe and rich for the plucking. This is where all the free cash is sitting & not in the extremely tiny by comparison tangibles markets.