Gold, National Debt, And Debt Limit Correlated For Over Six Decades
While the title says it all the chart below really drives home the point. Gold has followed the US debt and debt limit very closely since 2000.
If we look back 70 years we see that the “Gold Price/Debt Limit Ratio” further drives home this fact.
|
Year |
Gold Price (yearly average) |
Debt Limit (Billions US$) |
Gold Price/Debt Limit Ratio |
US Gold Reserves (metric tonnes fine gold) |
$ Value of Gold Reserves (Billions US$) |
Value of Gold Reserves/Debt Limit Ratio |
|
1940 |
$34 |
$49 |
0.69 |
19,543.30 |
$21.4 |
0.44 |
|
1945 |
$35 |
$300 |
0.12 |
17,848.00 |
$20.1 |
0.07 |
|
1950 |
$35 |
$275 |
0.13 |
20,279.00 |
$22.8 |
0.08 |
|
1955 |
$35 |
$281 |
0.12 |
19,331.00 |
$21.8 |
0.08 |
|
1960 |
$35 |
$293 |
0.12 |
15,822.00 |
$17.8 |
0.06 |
|
1965 |
$35 |
$328 |
0.11 |
12,499.00 |
$14.1 |
0.04 |
|
1970 |
$36 |
$395 |
0.09 |
9,839.00 |
$11.4 |
0.03 |
|
1975 |
$161 |
$577 |
0.28 |
8,544.00 |
$44.2 |
0.08 |
|
1980 |
$613 |
$925 |
0.66 |
8,221.00 |
$162.0 |
0.17 |
|
1985 |
$317 |
$1903 |
0.17 |
8,169.00 |
$83.3 |
0.04 |
|
1990 |
$384 |
$3,195 |
0.12 |
8,146.00 |
$100.6 |
0.03 |
|
1995 |
$384 |
$4,900 |
0.08 |
8,140.00 |
$100.5 |
0.02 |
|
2000 |
$279 |
$5,950 |
0.05 |
8,137.00 |
$73.0 |
0.01 |
|
2005 |
$445 |
$8,184 |
0.05 |
8,135.00 |
$116.4 |
0.01 |
|
2010 |
$1225 |
$14,294 |
0.09 |
8,133.00 |
$320.3 |
0.02 |
|
Today |
$1300 |
$16,700 |
0.08 |
8,133.00 |
$339.9 |
0.02 |
Source: MGI
And what would your conclusion to the long term trend?
What are the chances our US Debt Ceiling actually acts like a ceiling?
What are the chances the ceiling continues to be a non-ceiling?
What are the chances Gold continues its long term trend higher?
Nice chart Cory!
“what would”……….or what were…………….
There is no debt ceiling, per congress, therefore Non-ceiling.
LONG TERM TREND…….is higher………..1940..$35……2014…$1300………that is an established trend………Go back to 1860….gold $1
Be weary of a dyslexic attorney.
That reminds of the below chart of minimum wage v. gold
http://www.silverdoctors.com/chart-of-the-day-federal-minimum-wage-in-gold/
The stair step in the minimum chart is due to during the era when gold was fixed at $35 an increase in USD/hour was a real increase in wages and in real terms.
It also shows that recent increase in USD minimum wage are irrelevant in real gold terms. Maybe we are destroying the units purchasing power faster than adjusting the tyrannical wage regulations. It is the old story “He who is able to spend inflated money first….wins.”
Why Warren Buffet’s a billionaire patsy among other topics. Mhttp://mcalvanyweeklycommentary.com/cAlvany at his best.
Readjusting the above blog. McAlvany at his best:
http://mcalvanyweeklycommentary.com/
Worth the listen….thanks Rev
He is pretty good Reverend. Thank you.,
DITTO
Nice chart……………….conclusion…………..GOLD UNDER VALUED