The light blue line is the price of gold against M2 money supply in order to show it on the chart more easily. Mainly, take note of the highs on this line.
The purple line represents returns on the 30 year treasury after removing loses from inflation. Inflation normalized returns.
The blue line represents the return on GOLD. Namely, it maintains it's value through inflation, thus it's return is the rate of the inflation minus the inflation in gold itself through mining. It is estimated that the inflation of GOLD is approximately 2% per year.
Notice the occasions when the blue line is above the purple line. These periods are when GOLD returns more than the 30Y. They are brief, but more than often coincide with highs in the price of GOLD, whether local highs, or the ATH.
At the present, please take a look at the blue line. Enjoy.
The purple line represents returns on the 30 year treasury after removing loses from inflation. Inflation normalized returns.
The blue line represents the return on GOLD. Namely, it maintains it's value through inflation, thus it's return is the rate of the inflation minus the inflation in gold itself through mining. It is estimated that the inflation of GOLD is approximately 2% per year.
Notice the occasions when the blue line is above the purple line. These periods are when GOLD returns more than the 30Y. They are brief, but more than often coincide with highs in the price of GOLD, whether local highs, or the ATH.
At the present, please take a look at the blue line. Enjoy.
