Gold charts as of 6/1/2009

Gold Charts

In my ongoing quest to understand the gold relationship to the US dollar, I have created some charts and added a new twist to the analysis.

M2 money supply vs. world gold supply in oz. (above ground).
M2 numbers from the Federal Reserve (not seasonally adjusted).
Gold supply from the Gold Council.
Since 1959, the number of dollars has been growing compared to gold supply. As of 6/1/2009, there are about $1,616.09 dollars per oz.

M2 money supply vs. world gold supply chart

(M2/capita) vs. gold price.
M2 from the Federal Reserve (not seasonally adjusted).
US population numbers from the US Census bureau.
Gold supply from the Gold Council.
This chart attempts to adjust the rising money supply for the rising population before comparing to the gold price. The lowest ratio is 7/1/1980 at 10.58. The highest ratio is 7/1/1970 at 83.01. The current ratio as of 6/1/2009 is 29.00. You can really see the top of the bubble in 1980 in this view.

(M2/capita) vs. gold price chart

MZM money supply vs. world gold supply in oz. (above ground).
MZM numbers from the Federal Reserve (not seasonally adjusted).
Gold supply from the Gold Council.
Since 1959, the money of zero maturity dollars has been growing compared to gold supply. As of 6/1/2009, there are about $1,856.91 MZM dollars per oz.

MZM money supply vs. world gold supply chart

(MZM/capita) vs. gold price.
MZM from the Federal Reserve (not seasonally adjusted).
US population numbers from the US Census bureau.
Gold supply from the Gold Council.
This chart attempts to adjust the rising money supply for the rising population before comparing to the gold price. The lowest ratio is 7/1/1980 at 6.01. The highest ratio is 7/1/2001 at 68.10. The current ratio as of 6/1/2009 is 33.32.

(MZM/capita) vs. gold price chart

It is interesting that the M2/capita apex was in 1970, while the broader MZM/capita apex was in 2001. Maybe that reflects the growing use of money market funds vs. time deposits.