Silver Passes $37 as U.S. Inflation Nears 9%

Posted by Adam Sharp - Wednesday, March 23rd, 2011

Silver chart. The green line is today (Wed). Nice pop.

silver 3-22
Via Kitco.com

Hard to believe it was just two months ago, with silver trading around $27, when we published "Silver Chart Indicates $37.50 Possible."

Here is Jesse's latest chart, which seems to indicate next stop: $40. It does seem like $50 silver is in the cards, but let's not get too far ahead of ourselves.

Inflation Shows Up

Consumer inflation is heating up, and could already be around 9% in the U.S., as we reported a few weeks back.

Here's an updated graph from Shadowstats.com, where economist John Williams' alternate measure pegs consumer inflation at around 9%.

alternate inflation

If you're wondering why "official" consumer inflation (red line) is so low, there are a few factors at play. For one, housing is 42% of the Feds' index.

Second, the mix of products and services that make up CPI is constantly being "adjusted" by inflation-friendly neo-Keynesian economists.

It just so happens that these "adjustments" mask price inflation. You'll notice that the Fed is not often accused of overestimating inflation.

Also see MIT's Billion Prices Project for more alternate inflation data.

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