"I think we're going to look at the first half of 2011 and determine that QE2 and probably what is going to follow is QE3 and QE4 were not just necessary but very, very helpful in terms of stemming off deflation," argues Oliver Pursche, co-portfolio manager of the GMG Defensive Beta Fund. Pursche has sold out of his gold positions, however, calling the market "frothy, at best" and has been reducing positions in silver, platinum and palladium. The spotlight has once again turned from Europe to the U.S., giving support to the euro, as news that the European Central Bank bought € 2.7 billion in government bonds in the week ended Dec. 10 helped prop up Portugal and Ireland's debt load. This was the largest purchase since July and showed that the ECB was in the market to help struggling debt-laden countries. Silver prices were adding 16 cents to $29.78 shrugging off a report in the Financial Times which said that JPMorgan ( JPM) could be reducing its huge silver position in light of a two-year inquiry by the Commodity Futures Trading Commission. The CFTC has been trying to determine if the trading house has been illegally manipulating the price of silver.