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<p>[QUOTE=&quot;flydl2atl, post: 778006, member: 18355&quot;]I agree technically yes - inflation is defined as an increase in the money supply.&nbsp; Your belief is that gold and silver are good inflation hedges - based upon that I thought you were referring to price inflation and thus gave counter examples to show how gold does not track price inflation very well.</p><p><br /></p><p>There&#039;s a great analysis on seekingAlpha that examines the correlation between the price of gold and the money supply.&nbsp; The author concludes that &quot; moves in gold price appear to come before moves in the money supply&quot; and also that &quot;the money supply can expand now without gold necessarily increasing in value.&quot;</p><p><br /></p><p><a href="http://seekingalpha.com/article/108718-gold-price-and-the-money-supply" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://seekingalpha.com/article/108718-gold-price-and-the-money-supply" rel="nofollow">http://seekingalpha.com/article/108718-gold-price-and-the-money-supply</a></p><p><br /></p><p>My point is to simply show that there isn&#039;t a correlation between inflation and the price of gold - and therefore by definition cannot be a good hedge against inflation.[/QUOTE]</p><p><br /></p>

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