Bill Holter, JS Mineset, Released on 8/7/16
In a recent article, Peter Degraaf posted a series of charts including the one below. I must confess I had never seen this particular chart before but extremely glad it was posted. I knew the monetary base had grown wildly but did not realize the extent until seeing it in graph form. While Peter spent just one paragraph on this, let’s look at it in depth to get a better understanding of why it is so important and what it really means.
Let’s start by deconstructing this down to what it really means. First, I must confess I do not know whether this chart is comparing the “priced” amount of U.S. gold to the monetary base or rather the price of gold to the monetary base. Either way, this chart tells us something VERY important! The price of gold relative to the monetary base has never been lower than it is right now other than at the end of last year.
Bill Holter is currently a writer for Miles Franklin and Jim Sinclair’s Mineset where he posts weekly commentaries on gold and financial markets. Prior to joining Miles Franklin in 2012, Bill Holter Worked as a retail stockbroker for 23 years, including 12 years as a branch manager at A.G. Edwards. Later, he left Wall Street to avoid potential liabilities related to management of paper assets. Bill was a well-known contributor to the Gold Anti-Trust Action Committee (GATA) commentaries from 2007-2012. Bill became a writer for Jim Sinclair’s Mineset in 2015.