Short answer is that they would not. IMO, gold and silver are high right now considering the current risks of Inflation in the U.S. and globally. Inflation cannot occur in a environment were there is a glut of goods to buy. Wage inflation cannot occur where there is high unemployment.
As to levered sales, this is how it is currently done in the forex markets. It's always been levered. The concerns noted are more about the exchange traded funds or ETF's that are sometimes suspiciously levered when purchasers appear to believe erroneously that they actually hold a 100% ratio of physical gold or silver. This is not always or even often the case IMO, which is why I stay away from them.
As far as I am concerned, gold and silver are too high right now and due for a pullback.
And others would disagree. What is certain is that there is volatility in the precious metals markets. What is not certain is the extent of the manipulation of those markets, whether the manipulators can control them, and which way they will turn. With governments worldwide nearing the end of how much confidence-game money they can issue, precious metals look to be a safer investment than many other potential investments.
Maybe, though I believe that any pull back would temporary.
Also, I am still of the opinion that one should not view these metals as investments per se. When (not if) major currencies go in the crapper, gold and silver are going to look different to a lot of people. So are a lot of tangible products. How'd you like to have a warehouse full of liquor and toilet paper in a real crash?
IMO, if it were widely admitted how much of US debt is being covered by printing money and keeping obligations off the books, we'd hear the swirling toilet water around us right now. Or, from the other angle, how much of the debt is actually being purchased by legitimate investors/parties? Less than anyone is willing to admit.
It all goes back to the issue of what would be our medium of exchange if major paper currencies collapse. We don't really know. But it is a pretty good bet things will be a lot worse than the Great Depression.