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I quite agree that the US is expanding its money supply in an effort to devalue its currency, Tylermax, and thereby reduce the burden of eventually repaying its debt (which I doubt will ever happen), but most of the major currencies are getting the same treatment. It's a race to the bottom, with the US, the European block, Japan, China, and a host of smaller countries all trying to devalue their currencies to boost exports.

Until the concerted effort by the US and some of the central banks to prevent a world-wide de facto gold standard being adopted is seen to have failed, the US dollar remains the reserve currency, and is generally regarded as being safer than most other fiat currencies. Weird, isn't it, when the US is actually bankrupt. And it's quite conceivable that the Aussie dollar could fall back to around parity with the US dollar later this year, particularly if the US has to start raising interest rates to counter inflation.

China, Russia, India, Brazil and some of the oil-producing Middle Eastern countries are reputed to be still trying to introduce an alternative reserve currency in place of the US dollar, and the yuan might conceivably fill that role within a few years. But in the meantime, gold (and to a lesser extent silver) should continue to see increasing value and importance as the only reliable store of wealth, and a hedge against inflation. Fiat currencies have lost their credibility, and until something else fills the void, gold and silver should hold centre stage.

So although there will be some volatility in the gold and silver prices, the underlying upward trend should continue, which will be very good news for Bass.