M2/World Gold Supply (oz)
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In all charts, money stock values come from the St. Louis Fed. Gold stocks come from the Gold Council and gold prices from Kitco. These comparisons are for US money stock vs. World gold supply. Starting this month, I removed the MZM charts since they really told the same story as M2 vs. gold.
After peaking in December, gold pulled back more than $100 to start the new year at $1,121.50. The pull back, along with an increased M2 for the month, made it [relatively] more affordable than December 1.
At the beginning of the month, the M2/Price ratio was 7.49. During the stagflation crisis in 1980, the ratio went under 3.
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