In my regular historical and monthly gold charts, I compare the US money supply against gold, looking at two ratios: money supply vs. gold price and money supply vs. total above ground gold supply.
If I limit the comparison to just the US gold stocks, the numbers are a bit startling. In a previous post, I found two numbers for US gold stocks. In the following charts, I used the larger number from Wikipedia of 8,133.5 metric tonnes or 286,949,880 oz.
M2 / US Gold Supply (oz)
MZM / US Gold Supply (oz)
If the US government chose to re-monetize gold, backing each US dollar with gold bullion, the price would fall somewhere in the following range:
M2/oz (only US gold) is $29,203.71
MZM/oz (only US gold) is $33,385.62
You can look at this a couple of different ways. One angle would be that the difference between the $30,000 level and the current gold price (around $950) is how much value gold has lost since it was de-monetized. Another angle is how much inflation has taken place since the early 1930s when gold had a fixed price of $20/oz. Either way, it is an interesting bit of trivia.
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