All that glitters- a followup

Soberlook.com is out with the below chart this morning. 

QE3 begins

USD MM (Source: FRB)

I will have to watch to see how this flows into the money supply figures. However, I would note that a ramp in money supply without a corresponding increase in gold prices would, in my mind, make gold and precious metal shares more attractive. Modeling out different scenarios suggests that money supply, keeping all else equal, would have to rise by more than 2% to lead to a constructive view on precious metal shares. One caveat to this estimate is that the models I employ have a time component embedded. In essence, it is not only the absolute increase in money supply, but also when this increase occurs. The 2% cited gain is an average of different ramp up schedules.