What occurs if we divide all of the {dollars} on the earth by all of the gold on the earth?
For all of the {dollars} on the earth, let's take the M2 Financial Mixture, and for all of the gold on the earth, let's think about the entire above-ground shares.
You possibly can test the chart right here.
In accordance with the World Gold Council's estimate, from the daybreak of human historical past by the top of 2022, roughly 208,874 tonnes (or about 6.717 billion troy ounces) of gold had been mined.
On the finish of December, M2 amounted to $21,315 billion. Easy division provides us $3,173.39 per ounce. Let's name this the common gold worth.
Curiously, from 2009 to 2012, the common and actual gold costs have been a lot nearer. However Quantitative Easing has widened the hole.
So wouldn’t it be a giant shock if, because of an increase in the true worth of gold, the hole narrows additional?
submitted by /u/bitkogan
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