Silver price direction mirrors US Base Money Supply
Posted: Sun Apr 29, 2012 9:13 am
This graph I created appears to show that since QE2 ended, the price of silver has quite closely tracked the increase/decrease in the US base money supply. When the money supply heads up, POS goes up. When the money supply goes down, POS goes down.
This suggests that any hint of further money injections from the Fed is bullish for silver. You can follow the US money supply figures published biweekly at http://research.stlouisfed.org/fred2/series/BASE.
This suggests that any hint of further money injections from the Fed is bullish for silver. You can follow the US money supply figures published biweekly at http://research.stlouisfed.org/fred2/series/BASE.