Gold, page-1709

JFI

"Don't leave brains on the floor. Gold is directly related to money supply in system as well as purchasing power protection. There may be ebbs and flows but it will always revert back to this paradigm eventually. Whether that is by the day, week, month, year, decade or century. I don't think we'll need to wait that long."

The Bloomberg chart included some dodgy assumptions so I hung onto my brains at the door and did my own research and established the level to which US M2 is backed by gold.


Source date: Federal Reserve Bank of St Louis: Economic Research

It would appear that money supply has nothing to do with the price of gold. The "ebbs and flows" have no statistical significance.

If you want to understand the growth in money supply it might be more useful to comparing it to measures of spending, like GDP.