If Energy Prices Go Parabolic, Gold And Silver Will Go Parabolic X 3 | investing.com – Investing.com

If Energy Prices Go Parabolic, Gold And Silver Will Go Parabolic X 3 | investing.com – Investing.com

Commodities are historically cheap to the . This after the monster move over the last 18 months ignited by the Fed more than doubling its balance sheet during the same time period. Funny thing about looking at a chart of commodities. That rally largely has not included and . But that is likely to change:

The chart above shows gold vs the M2 measure of money supply from 2016 to present (the 4 1/2-year bear market in the sector ended late December 2015). The chart suggests that at some point the gold price will correct “up” to the line. Even if the Fed were to start tapering its monthly money printing, the money supply will not decline unless the Fed engages in “quantitative tightening” (permanent reverse repos to remove money from the system).