iShares Silver Trust (ETF) (SLV)

RandomGuy123 (< 20) Submitted: 7/07/07 6:54 AM : Start Price: $13.51 SLV Score: 17.51

Nearly every government around the world has seemingly joined forces in an effort to flood the world in liquidity (assumingly to foster economic growth), and are increasing their money supply (M3) at over 10% per year. But guess what? They're not growing at the same rate they are increasing the money supply, and money supply - GDP growth = inflation. That's a very simplified version, and some economists may dance around citing statistics, theories, etc saying it's wrong, but obviously, if you have more money and growth doesn't keep up, the money becomes worth less. It's simple supply and demand. The US government's ex fuel and food inflation numbers lead those who don't realize that basic fundamental truth to believe that inflation is being successfully contained and moderated by the financial 'wizards' at the FED, but in reality, inflation is much higher than the FED's numbers suggest. To the average American, this is obvious, as prices on the basic necessities of life increase at a rapid pace every year. Commodities, and precious metals in general, act as hedges against this inflation. As long as the world is awash in liquidity, inflation will continue to rise, and precious metals will follow.

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