Silver overnight up 10x the closest pm, palladium. Outperformance plus. So what happened re 'Stock-market Sell off'? Shares have been smokin since 4/12/12. A rather poor call from you http://forums.silverstackers.com/topic-34344-stock-market-sell-off.html
If this is anything like last year, it's well worth your time waiting until New Year kind of time. But that's gambling.
QE4 just announced + fake employment numbers = market treading water. Still hitting resistance, not smoking. P.S. a drop was what I expected to see, but I don't trade during this period.
Too many people sit ready to grab profit. Some seem to forget, if you buy silver as a hedge against inflation, and the silver price is driven up but other prices much less, then you get profit in terms of purchasing power. What happens then? Some dump. These price moves are nothing more than that. The Fed can make dollars all it wants, without spending those new dollars, you get no price inflation. And as the Feds Excess Reserves balance http://research.stlouisfed.org/fred2/graph/?graph_id=78516&category_id=0 shows, 1400 billion of the QE's just sits there doing nothin'. A mere 20% of QE1+2 added to the amount circulating money. An adjusted 2008 average ($13) silver price would be less than $20. It's not wise to buy silver after a +200% at even higher prices, and those that do so, are paying someone elses free ride, instead of silver. The Comex futures market represents now a share in the price that is as big as IShares Silver Trust, the by far largest 'ETF'. 290 Moz. And they didn't buy silver as a paper representation to hold it longterm. In every cycle, some end up with the physical silver at the highest paid price. Today isn't the highest (we saw $50) but it may last another decade to make it a bottom. And be sure, in meantime other prices will rise, watering that silvers purchasing power even at the same price.
Just to clarify. The fed buys the bonds off the US Government (via the Treasury) who spends it as part of their deficit budget each year. The fed recieves the debt instrument, the US Government is transferred electronic (M2) funds. These funds find their way into the financial system when the government spends them. Your graph shows "Excess Reserves of Depository Institutions", depository institutions refers to other banks (not the fed or treasury). Said banks can 'hold the funds as excess reserves' whilst making loans against said funds (fractional reserve banking). Correct me if I am wrong but I don't believe the graph can really tell us anything.
