Gold's Rise Adjusted for the Money Supply

23 июл.

The chart on the top shows the price of gold adjusted for the Money Supply.

The chart at the bottom shows the price of gold over time.

Compare and contrast the two and you see a valuable fact. Actually, this is something we should all do more often with our favorite symbols – compare and contrast them to the growing money supply.

Meaning, while gold is hitting all-time highs in nominal terms (chart at the top) it actually is underperforming in a drastic fashion relative to the growth of the money supply happening all around us. In many respects, this is a super important method of repricing assets based on the expansion, growth, and proliferation of the Dollar.

This is often why tech, new products, and innovations win out more than assets like gold. For example, the smaller chart to the right of both charts shows NVIDIA and Apple priced for the expansion of the Dollar. Both assets are still at all-time highs. In-fact, Bitcoin is also near or at all-time highs, although its chart is not nearly as "enormous" as it looks at a nominal level.

There's a lot to unpack here and I'll have to share soon.