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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (152959)	1/28/2021 5:57:48 AM
From: Horgad	Respond to of 218639

Inflation is an increase in the monetary supply. The effect is that some stuff goes up in price. Rarely does all stuff go up in price at once and never do they all go up equally. The million dollar question is what is going to go up in price the most next? IE what you are asking is when and if does more of the money available for investment/spending start flowing into SLV as opposed to all of the other things that are screaming up right now like housing, stock markets, food, medical, etc. The answer is beats the hell out of me, but for sure gold and silver are not consistently good inflation hedges. Instead they spurt and sputter on their own schedule sometimes moving opposite to monetary inflation, sometimes playing catchup...likely according to some because the paper market is so much larger than the physical market making them just another play thing of powerful traders. But if you are worried about your own expenses and savings and how they may be impacted by inflation, the best hedge for housing inflation may be buying a home (or two), the best hedges for food inflation may be hoarding food and buying farmland, the best hedge for stock market inflation may be buying stocks, the best hedge for wage inflation may be having a job, the best hedge for energy inflation may be investing in energy, and the best hedge for medical inflation may be a book on how to operate on yourself. <g> You get the idea.

To: Gary105 who wrote (152959)	1/28/2021 6:24:15 AM
From: GROUND ZERO™	4 Recommendations Recommended By Hawkmoon Mevis stsimon the longhorn Read Replies (2) \| Respond to of 218639

I have no signal for SLV but I am short the February gold from 1859.00 which is not far above the market right now... Of all the inflation indicators, I find the velocity of the dollar to be the best... Inflation means the speed of the dollar is accelerating, so the velocity of the dollar measures exactly that... Velocity of the dollar is a ratio of nominal GDP to a measure of the money supply (M1 or M2)... It can be thought of as the rate of turnover in the money supply, e.g., the number of times one dollar is used to purchase final goods and services included in GDP... So, the velocity of money is the rate at which people spend cash... think of it as how hard each dollar works to increase economic output... when the velocity of money is high, it means each dollar is moving fast to purchase goods and services, it reflects high demand which generates more production... therefore, inflation since more demand means prices rise so you can buy less for the same amount of dollars... When the velocity is low, each dollar is not being used very often to buy things... instead, it's used for investments and savings, this low demand doesn't generate as much production... Right now, the velocity of the dollar is rather slow, so there's really no inflation, at least according to the so called experts... Here's a graph of the velocity of M2, you can see how low it is... this is why the FED has been keeping rates low, there's no credible reason to raise rates despite the bonds moving lower, but I think the bonds have been moving lower because bond holders have been selling them to buy stocks... This could change... Meanwhile, to your question, this is why I'm short gold right now and have no buy signal for silver or SLV... I hope this was somewhat helpful... GZ