So one of the going stories asserts that gold should hit infinity based on historical money supply. There's certainly a relationship, but it looks to me that prices between $500 and $5000 are equally good. The current price seems within a wide band of prices way back to 1934. Does anyone have an interpretation that I don't see?
Price per oz Years M2 Supply $AU/M2
=============== ========== ============= =======
$ 20.58-20.72 1833-1932 (1.28-46.60) 0.44-16.188 ($21.32 1923, $17.06 1931)
$ 26.33 1933 (32.22) 0.8171
$ 33.85-35.27 1934-1967 (34.36-524.8) 0.065-1.026 ($31.69 1949)
$ 35.94-41.09 1968-1971 (566.8-710.3) 0.051-0.072
$ 58.16-97.32 1972-1973 (802-856) 0.068-0.121
$ 124.84-193.22 1974-1978 (902-1366.0) 0.091-0.214
$ 380.68 1979 (1474) 0.258
$ 612.56 1980 (1600) 0.383
$ 317.26-460.03 1981-1997 (1755-4033) 0.079-0.262
$ 271.04-294.24 1998-2001 (4377-5431) 0.049-0.067
$ 309.73-363.38 2002-2003 (5784-6071) 0.051-0.063
$ 409.72-444.74 2004-2005 (6412-6674) 0.061-0.069
$ 603.46-695.39 2006-2007 (7033-7438) 0.081-0.099
$ 871.96-972.35 2008-2009 (8153-8531) 0.102-0.119
$1224.53 2010 (8467-8814) 0.139-0.145
$1516.54-1900 2011 (8838-9314-?) 0.163-0.215
http://kitco.comhttp://www.census.gov/prod/www/abs/statab.htmlhttp://research.stlouisfed.org/fred2/data/M2SL.txt