If you pull up a chart of the Spot price of silver over the last ten years with a quarterly frequency it shows you the performance each quarter for the last ten years. This is important as banks, private funds, and pension funds work on a quarterly timetable of filing and reporting.
Then add Money Flow onto this chart. This is an index that indicates anything over 80 is overbought and anything under 20 is over sold.
It is important to understand what "overbought" means in this instance. It could refer to speculators and hype. In that case you will find that MSNBC, and all the other financial news channels are hyping this investment. But being overbought can also refer to a serious problem with the supply and demand curve. If demand exceeds supply you will also see serious overbought signal.
I say this because right now the Money Flow index is at 95. I have used this indicator for the last 25 years (I used to be a stockbroker) and I have never seen the money flow index this high.
This is despite the two extreme attempts to shake out the speculators by increasing margin requirements in the dead of night. This tells us we are not seeing this extremely high money flow due to speculation, but rather due to a shortage in the supply that is unable to meet demand.
Then add Money Flow onto this chart. This is an index that indicates anything over 80 is overbought and anything under 20 is over sold.
It is important to understand what "overbought" means in this instance. It could refer to speculators and hype. In that case you will find that MSNBC, and all the other financial news channels are hyping this investment. But being overbought can also refer to a serious problem with the supply and demand curve. If demand exceeds supply you will also see serious overbought signal.
I say this because right now the Money Flow index is at 95. I have used this indicator for the last 25 years (I used to be a stockbroker) and I have never seen the money flow index this high.
This is despite the two extreme attempts to shake out the speculators by increasing margin requirements in the dead of night. This tells us we are not seeing this extremely high money flow due to speculation, but rather due to a shortage in the supply that is unable to meet demand.